In a strategic push to bolster regional energy cooperation, state-owned SJVN has inked a power sale agreement with Damodar Valley Corporation (DVC) for the supply of 200 MW from the upcoming 900 MW Arun-III Hydro Electric Project in Nepal. This agreement marks a significant milestone in India's cross-border energy engagements and supports the nation's efforts toward clean energy transition. The Arun-III project, being developed by SJVN's fully owned subsidiary in Nepal, is expected to be operational by FY 2027–28 and promises to deliver sustainable energy while strengthening bilateral ties between India and Nepal.
Strengthening Regional Energy Ties
SJVN Ltd., a prominent state-run power utility, has formalized an agreement to supply 200 MW of hydroelectric power to Damodar Valley Corporation (DVC) from its under-construction Arun-III Hydro Electric Project in Nepal. The power sale agreement was signed in the presence of SJVN Chairman and Managing Director Bhupender Gupta and DVC Executive Director Sanjeev Srivastava, signifying a notable development in South Asia’s regional energy framework.
The initiative underscores India’s growing emphasis on cross-border electricity trade and highlights the government's commitment to fostering energy diplomacy with neighboring countries.
The Arun-III Project: An Overview
The 900 MW Arun-III Hydro Electric Project is one of Nepal’s largest infrastructure undertakings and is situated in the Sankhuwasabha district. It is being implemented by SJVN Arun-3 Power Development Company (SAPDC), a wholly owned subsidiary of SJVN.
Once commissioned, the project is projected to generate 900 MW of renewable energy, contributing significantly to the clean energy goals of the region. With its strategic location in the Arun River Basin, the project taps into Nepal's vast hydro potential while creating a sustainable and reliable power source for both Nepal and India.
Clean Energy and Economic Synergies
The Arun-III project is expected to be completed and operational by fiscal year 2027–28. Upon completion, it will serve as a crucial component of India’s push toward decarbonization and renewable energy integration. The agreement with DVC will ensure that a part of this clean energy is utilized to meet the power demands in India’s eastern region, particularly in Jharkhand and West Bengal, where DVC primarily operates.
This partnership not only supports India’s energy security agenda but also contributes to Nepal’s economic development through infrastructure growth, employment opportunities, and enhanced regional connectivity.
Strategic Importance of India-Nepal Energy Cooperation
The Arun-III agreement stands as a testament to deepening India-Nepal energy relations. It reflects a shared vision for sustainable development and mutual economic prosperity through collaborative infrastructure projects.
By investing in Nepal’s hydro resources and establishing long-term purchase agreements, India ensures reliable access to green energy while enabling Nepal to monetize its natural assets. The arrangement also enhances energy diversification and grid stability on both sides of the border.
Looking Ahead: Powering Growth Through Partnerships
With the Arun-III project progressing toward its commissioning timeline, SJVN is poised to play a pivotal role in reshaping India’s regional energy landscape. The 200 MW supply deal with DVC exemplifies how government-owned enterprises can work across borders to promote environmental sustainability, economic development, and strategic alignment in South Asia.
As the power sector evolves, such cooperative frameworks will become increasingly vital to achieving shared energy goals and mitigating climate change impacts across the subcontinent.
Conclusion:
The power sale agreement between SJVN and DVC from the Arun-III Hydro Electric Project reflects a forward-looking model of regional energy collaboration. Anchored in clean energy and cross-border cooperation, it sets the stage for deeper integration and sustainability in South Asia’s power ecosystem.
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