The Cabinet Committee on Economic Affairs chaired by Prime Minister Shri Narendra Modi has approved the investment of Rs. 5792.36 crores (Cost to Completion) for 669 MW Lower Arun Hydro Electric Project (LAHEP) at levelized tariff of Rs. 4.99 per unit.
The Committee has also accorded Ex-post facto approval for Special Purpose Vehicle SJVN Lower Arun Power Development Company Private Limited (SLPDC), a wholly owned subsidiary of SJVN incorporated in Nepal for implementation of LAHEP. In addition to this, the Committee has also approved the equity investment of Rs.1737.70 crores in SLPDC.
The 669 MW Lower Arun Hydro Electric Project with four units of 167.25 MW each, is located downstream of 900 MW Arun-3 Hydro Electric Project on river Arun in Sankhuwasabha district of the province-1 in Nepal. A tail race development of Arun3 HEP, the project will not have any reservoir or dam and will operate as a Tandem Operation System with Arun-3 HEP. This project is designed to generate 2900 million units of energy annually.
