The construction of 900mw Arun-III Hydroelectric Project in Kathmandu in Nepal would usher all-around development and help usher in prosperity, the Indian company executing the project said on Saturday.
The project activities would boost the development of new roads, bridges and other amenities like healthcare and education, Chairman and Managing Director of SJVN Ltd Nand Lal Sharma said in a statement here.
In addition to this, a total of 269 project-affected families will get 30 units each of electricity free of cost every month.
"The project will usher in an era of prosperity and development for the area and will certainly cement the bilateral ties of brotherhood among two traditionally friendly countries," he said.
Indian Prime Minister Narendra Modi and Nepalese Prime Minister K.P. Sharma Oli jointly laid the foundation stone of the project in Kathmandu on Friday.
Sharma said the project is being executed by SJVN Ltd through its wholly owned subsidiary namely SJVN Arun-III Power Development Company.
The project has been allocated to SJVN Ltd based on international competitive bidding by the government of Nepal in March 2008.
The project is a peaking run-of-river project located on the Arun river in Sankhuwasabha district. This is an export-oriented project with a generation capacity of 900mw.
The height of dam will be 70 meters, while the headrace tunnel will be 11.7km long. The powerhouse will be underground consisting of four vertical Francis turbines of 225mw each.
The Arun-III project has the potential to generate 4018.87 million units of electricity every year.
Sharma said the total project cost is likely to be Rs 7,000 crore, which includes both generation and transmission part.
SJVN Ltd has already commissioned India's largest 1,500mw Nathpa Jhakri Hydro Power Station and 412mw Rampur Hydro Power Station, both located in Himachal Pradesh.