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Arun-3 Project Status & PDA Summary (2025)

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Working page
Updated
2026-05-12

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Summary

Reference compilation for the 900 MW Arun-3 Hydroelectric Project — combining the 2014 Project Development Agreement (PDA) between Nepal and SJVN with 2024–2025 construction progress reports.

Key Data Points

Project basics

  • Installed capacity: 900 MW (4 × 225 MW Francis turbines)
  • Location: Phaksinda (dam) to Pukhuwa (powerhouse), Sankhuwasabha District
  • Design: peaking run-of-river, 3.4 hours/day at full rated output
  • Estimated cost: USD 1.6+ billion
  • Annual energy: 3,924–4,019 GWh (design)
  • Concession: 30-year Build-Own-Operate-Transfer (BOOT)

Commercial structure (PDA, 2014)

  • Developer: SJVN (Satluj Jal Vidyut Nigam), via subsidiary SAPDC
  • Nepal's free-power share: 21.9% (~197 MW equivalent, royalty-free)
  • Additional 10% offered to Nepal on commercial terms
  • Remaining electricity exported to India via a new 400 kV DC line to Sitamarhi, Bihar

Schedule and progress (December 2025)

  • Construction start: 2018/19
  • Original COD target: March 2025 — not met
  • SJVN applied for COD extension to September 2026; Project Review Panel formed to decide
  • Physical progress: 74.61% (power generation side)
  • Financial progress: 74.6%
  • 400 kV cross-border transmission line: 58.3% physical progress

Relevance to Project

Primary source for Arun-3's capacity, schedule, cost, and the Nepal–India free-power / export structure that makes Arun-3 a flagship example of India-developed, India-dispatched hydropower inside Nepal.

Limitations

  • Self-reported data: SJVN cost and progress figures are self-reported; no independent audit is cited.
  • Social impact gap: Social, resettlement, and environmental impact data is sourced from SAPDC's own materials, not independent assessment.
  • Seasonal profile incomplete: The 3.4-hour/day peaking design is noted but the full seasonal generation shape is not provided.
  • Grid absorption unknown: India-side grid absorption constraints for the exported power are not addressed.
  • Schedule fluidity: COD target has already been missed; the September 2026 extension is under review and not assured.

See also