India-Nepal Energy Cooperation Gains Momentum with Ministerial Visit to Arun-3 Hydropower Project

In a significant step forward for regional energy cooperation and infrastructure development, India’s Minister of Power, Shri Manohar Lal, and Nepal’s Energy Minister, Shri Deepak Khadka, jointly visited the under-construction 900 MW Arun-3 Hydroelectric Project in Nepal. The project, one of the largest cross-border energy ventures between the two nations, is being implemented by SJVN Arun-3 Power Development Company (SAPDC), a wholly owned subsidiary of India’s public sector undertaking SJVN Limited.

The visit, which underlined the strategic importance of the Arun-3 project in enhancing energy security and strengthening bilateral ties, was marked by a series of high-level inspections and reviews of ongoing construction activities. Upon arrival at Kathmandu airport, the Indian Power Minister was received by Shri R.K. Chaudhary, Chairman and Managing Director of SJVN (Additional Charge), who accompanied the ministerial delegation throughout the site visit.

Joining the delegation were several prominent dignitaries, including His Excellency Shri Naveen Srivastava, Indian Ambassador to Nepal, Shri Suresh Acharya, Secretary, Ministry of Energy, Government of Nepal, Shri Akash Tripathi, Additional Secretary, Ministry of Power, Government of India, and Shri Sushil Gyawali, CEO of the Investment Board Nepal. Their presence reflected the high-level coordination and cooperation between both governments to ensure the timely execution of the Arun-3 project, a key milestone in the broader energy partnership.

The ministers inspected critical components of the powerhouse, including the site of turbine assembly where substantial progress has been made. Shri Prashant Sharma, CEO of SAPDC, briefed the delegation on the progress of civil and electro-mechanical works, highlighting the commitment of the workforce and the steady adherence to timelines. Commending the quality and pace of construction, both ministers jointly inaugurated the commencement of electro-mechanical works for Unit #2, a symbolic yet significant milestone for the project.

The delegation later visited the dam site, a crucial segment of the hydropower infrastructure. They conducted a detailed review of the Head Race Tunnel (HRT) works, which form the backbone of water conveyance for power generation. The 11.7-kilometer-long tunnel, whose excavation was successfully completed in June 2024, had earlier been acknowledged by Nepal’s Prime Minister in a formal ceremony. Currently, benching and lining works for the tunnel are underway and progressing as scheduled, with completion anticipated in the coming months.

Both ministers expressed satisfaction with the progress of the HRT and encouraged SAPDC engineers and workers to accelerate efforts at the dam site to ensure that construction milestones are met within the stipulated timelines. They acknowledged the critical role the Arun-3 project will play not only in meeting Nepal’s domestic energy demands but also in boosting regional power trade and contributing to India’s clean energy goals.

The Arun-3 project, once operational, is expected to generate 3,924 million units of electricity annually, of which a significant portion will be exported to India. It symbolizes a shared vision for energy security, green development, and mutual growth between India and Nepal. Moreover, it exemplifies India’s commitment to supporting sustainable infrastructure development in neighboring countries through public sector collaboration and capacity building.

The ministerial visit to the Arun-3 site reaffirms the importance of strategic cooperation in the Himalayan region, particularly in tapping into its immense hydropower potential. It also sends a strong message about the evolving India-Nepal partnership, which continues to mature into a multi-faceted relationship rooted in connectivity, commerce, and energy.

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