The Arun-III Run-of-the-River project was bagged by SJVNL in March 2008, outbidding nine other power developers.
The feasibility study for the project was carried out earlier by the Nepal Electricity Authority. The power generated from the project would be evacuated by 430-kilometer, 220 kilovolt double-circuit power transmission line to Kathmandu via Duhabi and Dhalkebar. Construction of a 68-metre-high dam and a 117-km highway is also included in the project work.
“We are reviving the Arun-III project by doubling its capacity to 800 Mw now. We are in the final stages of preparing the Detailed Project Report (DPR). The construction of the project would begin in two years,” SJVNL Chairman and Managing Director H K Sharma said.
“This cost would go up now because of the upgradation, but only by 30-40 per cent,” another official from the company said.
SJVNL estimates the generation cost from the project to be INR3.7/kWh and hopes to sell it at over INR5/kWh (1 unit is one kilo-watt hour).
“We might make more money if we are able to trade the power,” Sharma said.
As per the memorandum of understanding signed with the Nepal government, SJVNl would provide 21.9% free power from the project to the neighbouring country and the balance power would flow to India. The company will also pay 7.5% of its total income from the project as royalty to the Nepal government.
