Kathmandu – DVC to Purchase 200 MW from Arun-3 Hydropower Project

Damodar Valley Corporation (DVC) has signed a deal to purchase 200 megawatts of electricity from the 900 MW Arun-3 Hydropower Project, which is currently under construction in Sankhuwasabha district. The project is being developed by SVJN Arun-3 Power Development Company Pvt. Ltd., a subsidiary of Satluj Jal Vidyut Nigam (SJVN) — an Indian government-owned enterprise.

🤝 Power Purchase Agreement Signed

The electricity sales agreement was signed in the presence of:

• Bhupendra Gupta, Chairman & Managing Director of SJVN, and

• Sanjeev Srivastava, Executive Director of DVC.

The Arun-3 project is currently over 75% complete, and is expected to start power generation within three years.

💵 Project Investment & Infrastructure

• Total project cost:

  • Rs. 144 billion for hydropower development

  • Rs. 40 billion for building the 217 km-long 400 kV transmission line to Muzaffarpur, India

• The project will also connect to Nepal’s grid via Dhalkebar substation.

📈 Electricity Distribution

• Signed Sale Agreement: 200 MW to DVC

• Unsold Output: 500 MW yet to be contracted

• Free Power to Nepal: 21.9% of total output (≈197 MW)

• Annual Generation Estimate: 3.466 billion kilowatt-hours (units)

📜 Key Agreements and History

• 2008: MoU signed between the Government of Nepal and SJVN

• 2014: Project Development Agreement (PDA) finalized

• Project to be handed over to Nepal 25 years after commissioning

• Contractor: SJVN (obtained survey license in 2066 B.S. via international bidding)

🏗️ Construction Highlights

• Tunnel: 12 km long tunnel to channel water from Faxinda (Makalu RM-5) to Diding (Chichila RM-3)

• Main tunnel length: 11.83 km from Amrang (Faxinda) to Diding

💡 Local and National Benefits

• Shares worth Rs. 1.6 billion to be distributed among affected local residents within one year of commercial operation

• Nepal’s yearly revenue from free electricity, royalties, and taxes is estimated at Rs. 13.92 billion

📸 Images & Content Courtesy:  
📰 Source: UrjaSanchar.com