Texmaco-SSFMPL JV secures contract for Arun-3 hydropower project in Nepal

22 September 2023

Texmaco-SSFMPL JV, a joint venture led by Texmaco, has inked a significant contract (Package C-5) with the Satluj Jal Vidyut Nigam (SJVN) Arun-3 Power Development Company Limited (SAPDC) for the Arun-3 hydroelectric power plant, a 900MW run-of-the-river hydropower project currently under construction in Nepal.

The Texmaco-SSFMPL JV, having recently secured an order valued at Rs 179.89 crore from SJVN Arun-3 Power Development Company Limited, is set to play a pivotal role in the project's progression. The scope of work encompasses procurement, fabrication, shop assembly, painting, testing, transportation, supply, erection, site testing, and commissioning of the Pressure Shaft Steel Liner. This job comprises the installation of two lanes of Pressure Shaft Steel Liner with a diameter of 5500mm, two bifurcations, four branches with a diameter of 4000mm each, along with the necessary accessories. The total estimated tonnage for this task stands at 4700 metric tonnes.

The Arun-3 hydroelectric power plant, governed under the build, own, operate, and transfer (BOOT) model, is a collaborative effort between India's SJVN and the Nepalese government. SAPDC, a wholly owned subsidiary of SJVN, will oversee the operation of the facility for a period of 25 years, excluding the initial construction phase lasting five years. Following this tenure, the ownership of the power plant will be transferred to the Nepal government.

One of the most noteworthy aspects of this agreement is the significant benefit it brings to Nepal. During the initial 25 years of commercial operations, Nepal will receive 21.9% of the electricity generated at the Arun-3 power plant as free power, underscoring the mutual cooperation between India and Nepal in harnessing the potential of renewable energy resources.

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