Another milestone in India Nepal ties. Prime Minister Narenra Modi and his Nepalese counterpart KP Sharma Oli jointly laid the foundation stone for the 900 megawatt Arun-3 hydropower plant. The project is a win win situation for both India and Nepal.
Arun-3 is the largest capacity project in the history of Nepal. The venture will transform the Nepalese economy by generating 900 MW of power as it aims to provide billions of dollars to the Nepal government in the form of free electricity, royalty and tax. Nepal will get free energy in the concession period of 25 years. India, too, would benefit through the supply of the electricity generated by the project.
Expected to be completed in the next five years, the Arun-3 hydropower project will feature a 70m tall concrete gravity dam and an underground cavern as its powerhouse where 4 production units of 225 megawatt will function.
The project will also provide 21.9 per cent or 197 megawatts of the generated energy free of cost to Nepal.
Investment Board Nepal had granted the licence to Satluj Jala Vodyut Nigam Power Development Company, a subsidiary of Indian government-owned Satluj Jal Vidyut Nigam Ltd, to generate power from the Arun-3 Hydropower Project.
The project will generate direct employment to about 3000 and indirectly to many more for years to come. Nepal has a net power deficit.
The project will go a long way to subside the rising demand of electricity in Nepal. Arun 3 is all set to become a rising star in the diplomatic ties between the two nations.