34 percent work of Arun III project completed

Kathmandu: The work of the 900 MW Arun III Hydropower Project under construction with the investment of the Government of India has achieved 34 percent progress so far. There is still 66 percent work left of the project. Out of 9 kilometers of the project, 3 kilometers long tunnel has been dug. The work of the project has been delayed due to the corona virus epidemic. It is planned to complete Arun III by 2023.
The foundation stone of this project was laid by Indian Prime Minister Narendra Modi and Nepal’s Prime Minister KP Sharma Oli. The Central Government of India has a 64.46 percent stake in Sutlej Hydropower Corporation Limited.
Of which, Himachal Pradesh has 25.51 percent and the rest is held by the general public. Sutlej has started construction of the project through SJBN Arun III Hydropower Development Company.
The company will construct 400 KV transmission line from the project site in Sankhuwasabha to Dhalkebar substation. Nine hundred megawatts of electricity will be generated from four units with a capacity of 225 megawatts.
From the project, Nepal will get 21.9 percent or 197 MW of electricity free of cost and billions of rupees including royalties and other taxes. Arun is the third largest project under construction.
The project is estimated to cost Rs 115 billion. Out of the total investment, Rs 104 billion will be spent on power generation infrastructure and Rs 11 billion on transmission lines.
SJBN has invested Rs 25 billion in equity. SJBN has borrowed Rs 41 billion, or Rs 65.60 billion, from the State Bank of India (SBI). Nabil and Everest have signed a loan agreement worth Rs 9 billion, or Rs 14.40 billion. SJBN will borrow Rs 80 billion, or Rs 50 billion, to build the project from India’s SBI and Nepal’s Everest and Nabil. The project is being implemented in 4 lots. Apart from the construction period, the duration of the project is 25 years.