The ArunIII hydropower plant is being developed on the Arun River in Sankhuwasabha District of Province 1, East Nepal. It is an exportoriented project with a power generation capacity of 900MW.

Estimated to cost more than $1.6bn, the hydropower plant will produce 4,018.87 million units of electricity a year. The project secured financial closure in February 2020 when the governments of India and Nepal signed an agreement. The project cost will include an investment of more than $156m to develop the transmission line.

SJVN will operate the power plant for a concession period of 30 years. Then, the ownership will be transferred to the GoN. It will provide 21.9% of free power to Nepal during the concession period.