The project is a 900 MW run-of-the-river hydropower endeavor on the Arun River, being developed by SJVN Arun-III Power Development Company (SAPDC), a wholly-owned subsidiary of India's Satluj Jal Vidyut Nigam (SJVN), a joint venture between the Government of India and the Government of Himachal Pradesh.
Located in the Sankhuwasabha district, the Arun-III hydroelectric power plant is poised to become Nepal's largest hydroelectric facility.
Under the project's agreement, Nepal is slated to receive 21.9% of the electricity generated during the initial 25 years of commercial operations, after which the plant will be transferred to the Nepal government. The Investment Board Nepal (IBN), responsible for facilitating public-private partnerships and foreign direct investments in Nepal, emphasized the need to address the entry route concerns, directing the matter to the council of ministers.
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