Arun III Hydropower Project Status: 40 Percent Construction Work Complete

July 4, 2021 | Investopaper

The construction work of the 900 MW Arun III Hydropower Project is almost 40 percent complete in three years. The work has been repeatedly hampered due to labor disputes, ongoing compensation crunch, and explosions (several times).

The Sutlej Hydropower Corporation, owned by the Government of India, is constructing the project. In 2014, the Project Development Agreement (PDA) was signed. The construction is targeted to be completed by September 2022.

The process of construction of transmission line has also been started to transfer the generated electricity to Dhalkebar transmission line. A 400 KV transmission line of high capacity will be constructed from the powerhouse to Dhalkebar (217 km) on the Nepal-India border to export the generated electricity.  To reach Dhalkebar, 530 towers will be constructed in 7 districts including Sankhuwasabha, Bhojpur, Khotang, Udaypur, Dhanusha, Mahottari, and Siraha.

Nepal will receive 21.9 percent or 197 MW of free electricity and Rs 348 billion in financial gain from the project. The affected locals will get 1.60 billion shares and 30 units of electricity per month.

As per the PDA agreement, the project will be handed over to the Government of Nepal 25 years after its completion of construction.


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