The SJVN joint venture (JV) has laid the foundation stone of its 900MW Arun-3 hydroelectric project at Kathmandu, Nepal.

The JV comprises the governments of India and Himachal Pradesh.

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Located on River Arun in Sunkhuwashabha district of Province 1 in Eastern Nepal, the project has been allocated to the company based on international competitive bidding (ICB) by the Government of Nepal (GoN) in March 2008.

During that period, GoN and SJVN signed a memorandum of understanding to undertake the Arun-3 project, which will be built with an investment of approximately Rs70bn ($1.3bn).

“The project is being executed by its wholly owned subsidiary SJVN Arun-3 Power Development Company (SAPDC).”

SJVN chairman and managing director Nand Lal Sharma noted that the project is being executed by its wholly owned subsidiary SJVN Arun-3 Power Development Company (SAPDC).

The export-oriented project was awarded to SJVN on a build-own-operate-transfer (BOOT) basis for a period of 30 years. It will see the erection of a 217km-long 400KV double-circuit transmission line up to the Nepal-India border.

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With a dam height of 70m, Arun-3 has the potential to generate 4,018.87 million units of electricity a year. The Head Race Tunnel will be 11.7km-long.

The project’s Power House will be built underground and feature four 225MW Vertical Francis Turbines.

SJVN awarded four major implementation contracts for the Arun-3 Project.

Sharma further added that the company already has already commissioned the 1,500MW Nathpa Jhakri hydropower station and the 412MW Rampur hydropower station in Himalayan Geology in India.