Nepal made the decision to let Satluj Jal Vidyut Nigam (SJVN) Limited of India to build a second hydropower project there.

Currently, SJVN is working on a 900 MW run-of-river hydroelectric project called Arun-III, which is expected to be finished in 2024 and is situated on the Arun River in Eastern Nepal.

An official statement said the draft project development agreement (PDA) to be signed with India’s state-owned SJVN to develop the 669 megawatt (MW) Lower Arun Hydropower project in eastern Nepal was approved at a meeting of the Investment Board Nepal (IBN), presided over by Prime Minister Pushpa Kamal Dahal Prachanda.

The news breaks only days before of Prime Minister Prachanda’s trip, which will begin on Wednesday. Before it is put into action, the proposal must have the Council of Ministers’ approval.

IBN has already authorized an investment of Rs 92.68 billion for the project’s construction. According to a statement by the IBN, the construction of this 669-MW revolutionary project would prove to be a turning point in the nation’s socioeconomic growth. In Nepal, the SJVN established the Lower Arun Power Development Company. The Lower Arun project, which is situated in the Sankhuwasabha and Bhojpur districts, will be a tailrace development of Arun-III and will not have any reservoirs or dams, meaning water will re-enter the river for the project.

After the 900 MW Arun-III and 695 MW Arun-IV hydroelectricity projects, this is the third project on the Arun River that has been undertaken, all via negotiating periods. According to The Kathmandu Post newspaper, the three projects would use the river in the Sankhuwasabha district to produce roughly 2,300 MW of power.

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