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Arun-3 Hydroelectric Project

July 17, 2026

The Power Secretary recently reviewed the progress of SJVN's 900 MW Arun-3 Hydroelectric Project in Nepal.

About Arun-3 Hydroelectric Project:

  • It is a 900 MW run-of-the-river hydropower project being developed on the Arun River in the Sankhuwasabha District of Eastern Nepal.
    • Arun is a tributary of the Koshi River in Nepal.
  • It envisages a concrete gravity dam and a Head Race Tunnel (HRT) of 11.74 km with an underground power house containing four generating units of 225 MW each on the left bank.
  • Once completed, it will be the biggest hydroelectric facility in Nepal.
  • It is being developed on a build-own-operate and transfer (BOOT) basis by Satluj Jal Vidyut Nigam (SJVN) Arun 3 Power Development Company (SAPDC), a joint venture of the Government of India and the Government of Himachal Pradesh.
  • SAPDC will operate the facility for a period of 25 years, excluding the construction period of five years, before transferring ownership to the Nepal government.
  • Nepal will receive 21.9% of the electricity generated at the power plant as free power during these initial 25 years of commercial operations.
  • The project will provide surplus power to India, strengthening economic linkages with Nepal.
  • The power from the project shall be exported from Dhalkebar in Nepal to Muzaffarpur in India.

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