Arun III

Arun III is an under-construction run-of-the river-type hydro-electric project constructed by SJVN Arun III Power Development Company Private Limited (a wholly owned subsidiary of SJVN Ltd) in Nepal at the Arun River. In this project, 900 megawatts of electricity was expected to be produced.[1]

The project was formed by Nepal Government in 1992. However, the NGOs, environment protectors and individuals worried against rampant privatization in the culture and natural beauty of the Arun valley expressed numerous concerns against it. The criticism of the project included fear of increase of already-high electricity tariffs and whether the size of the project was appropriate for a country of Nepal's size. There was also a debate for the road to the project area concerning deforestation and habitat fragmentation. Finally in 1995, the World Bank decided to withdraw their support, effectively cancelling the project.

The Project again resurfaced and a Project Development Agreement was signed in November 2014. The surplus power from the project will be exported to India from Dhalkebar in Nepal to Muzaffarpur in Bihar. In 2017 the cabinet of India approved the project.[2]