Arun III Hydropower Project: Main Tunnel Breakthrough

Kathmandu, Jun 5 (PTI) The main tunnel of the 900 MW Arun III Hydropower Project, being constructed with Indian assistance has achieved a breakthrough, with Nepal Prime Minister Pushpakamal Dahal ‘Prachanda' on Wednesday triggering the last blast to mark the completion of heading excavation.

Prime Minister 'Prachanda' attended an event to mark the completion of heading excavation for the 11.8 km-long Head Race Tunnel of the 900 MW Arun- 3 Hydro Electric Project in the Sankhuwasabha District in eastern Nepal.

The length of this Head Race Tunnel is 11.83 km from Fyaksindha to the exit of Pukhuwa. The Arun-3 Hydro Electric Project is being executed by SJVN Arun-3 Power Development Company Pvt. Ltd. (SAPDC), a fully-owned subsidiary of the Sutlej Jal Vidyut Nigam (SJVN).

“Prime Minister Prachanda also monitored the dam site and the powerhouse in Chichila Rural Municipality of Arun III situated in Sankhuwasabha from a helicopter, according to officials.

With this over 70 per cent of the 900 MW hydropower project being constructed by Sutlej Jal Vidyut Nigam (SJVN) of India has been completed, officials added.

The Project is being executed by SJVN Arun III Power Development Company Pvt. Ltd. (SAPDC), a fully owned subsidiary of SJVN.

SAPDC is a significant collaboration between SJVN and the Government of Nepal, which aims to enhance regional energy security and boost economic development through sustainable hydropower generation in Arun River Basin, the statement said.

Apart from Nepal's Minister of Energy, Water Resources and Irrigation Shakti Bahadur Basnet, India's Ambassador to Nepal Naveen Srivastava and Chairperson and Managing Director, SJVN, Sushil Sharma were among those who were present at the event.

Addressing the gathering, Prachanda said: “This breakthrough brings us closer to the goal of providing clean, renewable energy and in contributing to the sustainable development of the region.”

Ambassador Srivastava recalled that Prime Minister Narendra Modi and his Nepali counterpart Prachanda had agreed last year to the long-term power trade agreement for the import of electricity from Nepal.

Completion of the export-oriented 900 MW Arun 3 Hydro Electric Project will be a major milestone for this, he said.

SJVN CMD Sharma briefed the Prime Minister about the progress of the project and the associated 217 km long transmission line as he informed that more than 74 per cent of the project works has been completed.

Arun III Hydro Electric Project will start generating electricity by next year and it has the potential to generate 3,924 million units of electricity every year, he added.

Under the arrangement, Nepal will get 21 per cent free electricity from the project being constructed at an estimated cost of around Rs 104 billion and will also get financial benefits amounting to Rs 300 billion under various headings.

Local families will receive up to 30 units of electricity free per month after the production of electricity.

The project will be handed over to the Government of Nepal after 25 years of operation. About 4,000 workers, both Nepali and Indian, are employed at the Arun III Project site.

Three projects, West Seti, Arun III, and Upper Karnali, are being developed by Indian companies. During Jaishankar's visit to Nepal earlier in January this year, agreements on various issues such as exporting 10,000 megawatts of electricity within the next 10 years, were reached.