The visit of SJVN’s top leadership to the 900 MW Arun-3 Hydroelectric Project in Nepal underscores the strategic, economic and diplomatic importance of cross-border hydropower cooperation between India and Nepal. As one of the largest bilateral energy projects in the Himalayan region, Arun-3 is central to regional clean energy goals and long-term power security.
What Is the Arun-3 Hydroelectric Project?
Arun-3 is a 900 MW run-of-the-river hydroelectric project being developed on the Arun River in Nepal’s Sankhuwasabha district. It is being executed by SJVN through its wholly owned subsidiary, SJVN Arun-3 Power Development Company Pvt. Ltd. The project is among the most significant Indian investments in Nepal’s hydropower sector and forms a key pillar of bilateral energy cooperation.
What Was Reviewed During the Site Visit?
The Chairman and Managing Director of SJVN reviewed construction activities at critical project locations, including the dam site at Phaksinda and the powerhouse and associated infrastructure at Pukhuwa. Project teams briefed the leadership on construction progress, site-specific challenges and mitigation strategies, particularly those arising from rugged terrain, weather variability and Himalayan geophysical conditions.
Why Arun-3 Matters for India and Nepal
Once commissioned, Arun-3 will add 900 MW of renewable energy capacity, contributing to Nepal’s hydropower-led economic development while supporting India’s growing electricity demand through cross-border power trade. For Nepal, the project strengthens export-oriented power generation; for India, it diversifies energy sources and supports clean energy commitments.
Hydropower and Regional Clean Energy Cooperation
Arun-3 reflects a broader shift toward regional energy integration in South Asia. Hydropower projects in Nepal complement India’s renewable energy mix by providing stable, low-carbon base-load power. Such projects also reinforce India’s neighbourhood-first policy by linking development cooperation with strategic infrastructure creation.
Operational Challenges in Himalayan Hydropower
The project faces complex engineering and logistical challenges due to steep gradients, seismic sensitivity and harsh climatic conditions. Maintaining safety standards, quality control and timelines is critical, particularly given the scale of the project and its long-term strategic value. Sustained workforce morale and disciplined project management remain essential for timely execution.
Strategic and Economic Implications Ahead
Beyond power generation, Arun-3 is expected to deepen economic interdependence between India and Nepal, generate employment, and contribute to regional stability. Its success could pave the way for further Indian participation in Nepal’s hydropower sector, positioning clean energy as a cornerstone of bilateral relations.
What to note for Prelims?
- Arun-3 Hydroelectric Project: 900 MW run-of-the-river project in Nepal.
- Location: Arun River, Sankhuwasabha District.
- Developer: SJVN through SAPDC (wholly owned subsidiary).
- Significance: Key India–Nepal cross-border hydropower project.
What to note for Mains?
- Role of cross-border hydropower in regional energy security.
- India–Nepal cooperation in renewable energy and infrastructure.
- Challenges of large hydropower projects in fragile Himalayan ecosystems.
- Hydropower as a tool of neighbourhood diplomacy and clean energy transition.
