Arun III is a hydro-electric project under construction on the Arun River in Sankhuwasabha District of Province 1, Nepal. The project is of 900 megawatts capacity and will be the largest hydropower plant in South Asia. It is constructed by SJVN Arun III Power Development Company Private Limited, a wholly owned subsidiary of SJVN Ltd.[1][2]
The estimated cost is US$1.6 billion including $156 million to develop the transmission line. It will generate about 4,018.87 million units of electricity annually. In February 2020, financial closure was done by the governments of India and Nepal. The project is constructed on a build-own-operate and transfer (BOOT) basis. SJVN will operate the plant for 30 years and then transfer the ownership to the Nepal government. During 30 years of operation, 21.9% of power will be provided to Nepal free of cost. The project's construction is expected to generate 3,000 jobs in Nepal and India.[3]