Lower Arun Hydroelectric Project
Why in News?
The Lower Arun Hydroelectric Project (669 MW) is in the news because on April 23, 2026, Patel Engineering Limited was declared the lowest bidder (L1) for a massive ₹1,593.08 crore contract for the project's construction.
Project Overview
- Location: Situated in the Sankhuwasabha and Bhojpur districts of Eastern Nepal.
- River: Built on the Arun River, a major tributary of the Koshi River.
- Developer: Developed by SJVN Lower Arun Power Development Company (SLPDC), a wholly-owned subsidiary of India's PSU, SJVN Limited.
- Model: Operates on the BOOT (Build, Own, Operate, and Transfer) model with a 25-year concession period after construction.
Technical Specifications
- Installed Capacity: 669 MW (revised from the initial 679 MW).
- Type: Run-of-River (RoR) project. It has no reservoir or dam of its own.
- Tandem Operation: Designed as a tailrace development of the upstream 900 MW Arun-3 project. It uses the water discharged directly from Arun-3 to generate power.
- Annual Generation: Expected to produce approximately 2,901 to 2,970 million units of electricity per year.
Strategic Significance
- Investment: One of the largest foreign investments in Nepal, estimated at roughly $1.3 billion (₹92.68 billion).
- Energy Export: Surplus power will be exported to India through a 400 kV transmission line connecting to Sitamarhi in Bihar.
- Bilateral Ties: It is the second major project awarded to SJVN in Nepal (after Arun-3), strengthening India's role as Nepal's primary partner in the power sector.
- Key Works: Tunnels, Power House, Surge Shafts
- Completion Year: Planned for 2028-2030
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