State-owned SJVN Limited has signed a Power Sale Agreement (PSA) with Damodar Valley Corporation (DVC) for the supply of 200 MW of electricity from its flagship 900 MW Arun-III Hydro Electric Project in Nepal. The agreement marks a significant milestone in cross-border energy cooperation and regional energy security.
The has been signed on Friday in the presence of senior officials from both organisations in New Delhi. On the occasion, SJVN Limited’s Chairman & Managing Director (CMD) Bhupender Gupta (Additional Charge), Director (Projects) Sushil Sharma, and Director (Personnel) Ajay Kumar Sharma along with Sanjeev Srivastava, Executive Director from DVC. The agreement has been formally signed by SJVN’s Chief General Manager (Power Trading) RK Gupta and DVC Senior General Manager (Commercial) Samit Mandal.
The Arun-III Hydro Electric Project, located in Sankhuwasabha District of Nepal, is being developed by SJVN through its wholly owned subsidiary, SJVN Arun-3 Power Development Company Pvt. Ltd. (SAPDC). With an installed capacity of 900 MW, the project is designed to generate clean and sustainable hydropower and is slated for commissioning in the financial year 2027–28.
The Arun-III project represents a key collaboration between India and Nepal in the field of energy, aimed at boosting economic development and enhancing regional energy security through sustainable hydropower generation in the Arun River Basin.
Commenting on the development, SJVN officials reiterated the project’s strategic importance in meeting India’s growing power demand and its alignment with the country’s broader clean energy goals. Once operational, the project is expected to provide a stable and environment-friendly power supply, supporting both domestic consumption and regional energy trade.
Source: PSU
