Himal Press 
KATHMANDU: The Arun 3 Hydropower Project (900 MW) achieved a breakthrough on its 1.4-kilometer headrace tunnel on Tuesday.
Prime Minister Pushpa Kamal Dahal reached the project site in Sankhuwasabha district on Tuesday to attend a special ceremony organized by the company.
SJVN Arun-3 Hydropower Development Company Ltd, a special purpose vehicle of Indian power major, SJVN Ltd, is building the project. According to the company, the project has achieved over 70% work progress.
Speaking on the occasion, Dahal said Nepal was on track to create a history on electricity trade. “We have brought several incentives to encourage hydropower developers in the budget for the upcoming fiscal year,” Dahal added. “We are allowing the private sector in transmission line construction and energy distribution. Likewise, the policy of allowing separate investments in the construction of damn and powerhouse will encourage the private sector.”
He also said the Nepal’s total hydropower capacity will reach 4,500 MW in the next year with the addition of 900 MW to the national grid.
Dahal also said the government was implementing reservoir projects like Budhgandaki, Dudkoshi and Nalsinggadh to supplement energy demands in the dry season.
The peaking run of the river project is estimated to cost Rs 144 billion. The developer is providing 21.9% of energy free fo cost to the government and also providing 30 units of electricity every month free of cost to families in affected areas. SJVN Ltd will hand over the project to the Government of Nepal after 25 years.
