Located in the Sankhuwasabha district, the project is expected to improve Nepal’s installed power capacity and support the country’s vision of utilising its vast hydropower potential for accelerated economic development.
Under the Rs5.36bn ($80m) deal, BHEL will be responsible for designing, engineering, manufacturing, supply, erection and commissioning of electromechanical equipment, which includes four vertical 225MW Francis turbines and generator sets.
For this project, BHEL will be manufacturing turbines, generators, generator transformers, control systems, bus ducts and other associated equipment at its India-based facilities.
The erection and commissioning works will be undertaken by BHEL’s Power Sector Northern Region and 400kV GIS will be executed by Transmission Business Group.
Upon completion, the Arun-3 Hydroelectric Project will be the largest hydropower project in the country.
BHEL entered the Nepalese energy market in 1980 by supplying and commissioning two 30MW Hydro Generating sets for the Kulekhani-I Hydro Power Project.
The company is currently executing hydro projects with capacities exceeding 2.7GW in Nepal and nearly 2.9GW in Bhutan.
BHEL also recently received export orders from Benin, Togo, Chile and Estonia.