India-Nepal: Arun-III Hydroelectric Project

GS2 – International Relations

Context:

India’s Energy Minister recently assessed the progress of the Arun-III Hydroelectric Project located in Nepal.

Key Highlights:

• The Arun-III is a run-of-the-river hydroelectric facility situated on the Arun River within Nepal’s Sankhuwasabha District in the eastern part of the country.

About the Arun River:

• The river has its source in the Tibet Autonomous Region of China, where it is known as Phung Chu or Bum Chu.
• Flowing southward, it cuts through the Himalayan range into eastern Nepal, eventually merging with the Sun Koshi and Tama Koshi rivers to form the Sapta Koshi.
• Covering around 490 km in length, approximately 300 km of its course lies within Nepalese territory. It is part of the broader Koshi River network, which ultimately feeds into the Ganga River system.
• The river navigates through steep landscapes and deep gorges, creating ideal conditions for hydropower generation.
• Major tributaries include:
  • Right bank: Barun River and Trisuli Khola
  • Left bank: Ikhuwa Khola and Sabha Khola

Project Development:

• The project is spearheaded by SJVN Ltd. (Satluj Jal Vidyut Nigam Ltd.), a public sector company from India.
• The execution responsibility lies with SJVN Arun-3 Power Development Company (SAPDC), a fully-owned subsidiary of SJVN.
• It is being developed following the Build-Own-Operate-Transfer (BOOT) model.
• Established in 1988, SJVN Ltd. is a joint initiative of the Government of India and the Government of Himachal Pradesh, mainly engaged in hydroelectric power production.