SJVN, a joint venture between the India government and the Himachal Pradesh state government, is under contract to develop the project in Sankhuwasabha district of eastern Nepal.
In March 2008, Nepal had signed a memorandum of understanding SJVN Limited to execute a 30-year build-own-operate-transfer agreement.
The project is planned to be completed in 60 months from the date of financial closure, which is expected in September 2017.
As per the project development agreement (PDA) signed in 2014, about 21.9% power generated from the facility will be supplied to Nepal over entire 25 years of concession period.
The run-of-river project involves construction of 70m-high concrete gravity dam and a head race tunnel (HRT).
With 3.65hr of minimum peaking capacity, the project will feature four generation units each with 225MW capacity. It will generate 3685 GWh of clean power annually.
Apart from providing surplus power to India, the project is expected to help strengthen economic ties with Nepal.
The project, which is expected to create over 3000 direct jobs during construction phase, will be implemented by SJVN’s 100% subsidiary SJVN Arun-3 Power Development Company (SAPDC).
In 2013, SAPDC was incorporated and registered as a private limited company under Nepal's Companies Act, reported Press Trust of India.
