Call for bids for sale of 702 MW power of Arun III

KATHMANDU: TUESDAY, MARCH 23, 2021 – SJVN Arun-3 Power Development Company Pvt. Ltd. has invited bids for the sale of 702.9 MW of electricity generated from the Arun III Hydropower Project.

The 900 MW project being constructed on the Arun River in Sankhuwasabha is targeted to be completed within the next year and a half, i.e. by 2023 BS. Project officials have said that 40 percent of the project, which is being regulated by the Nepal Investment Board, has been completed so far. Currently, construction work of the project tunnel and dam site is underway.

The construction of the project was expedited with the provision of exporting electricity. The promoter company has invited bids for the sale of electricity generated from the project as the date of power generation is approaching.

The company has stated that even a joint venture company with 15 years of experience of buying and selling at least 10 MW of electricity can submit bids for the purchase of electricity for the project.

According to the Project Development Agreement (PDA) with the Investment Board, Nepal will get 197 MW of electricity from the project free of cost for 25 years. Similarly, 30 units of electricity will be provided to each household affected by the project for 25 years. It is also mentioned that infrastructure such as roads, bridges, education, health and drinking water will be developed in the affected villages and wards. The PDA states that the project will be owned by the Government of Nepal after 25 years.

As it is an export oriented project, the company will construct 400 KV transmission line from the project site in Sankhuwasabha to Dhalkebar substation. The target is to export electricity to India from the Dhalkebar-Muzaffarpur 400 KV line. The market of India and Southeast Asia is expected to expand for Nepal’s electricity if any Indian company buys electricity from the project.

The power house of the project is being constructed to generate 900 MW of electricity from 4 units of 225 MW capacity.

The promoter of the Arun III Hydropower Project has been promoted by the Satluj Hydropower Corporation, a company owned by the Government of India. The Central Government of India has a 64.46 percent stake in Satluj Company. Of which, Himachal Pradesh has 25.51 percent and the rest belongs to the general public.

Satluj Hydropower is constructing various hydropower projects with the target of generating 5,000 MW of electricity by 2023. The company is investing in the Hydropower sector in various countries with the goal of generating 12,000 MW of electricity by 2030. The company aims to generate 25,000 MW of electricity by 2040.