The 900 MW Arun III Hydropower Project is around 40% complete after three years of construction. Labor disagreements, a continuous compensation crunch, and explosions have all delayed the construction (several times).
The project is being built by the Sutlej Hydropower Corporation, which is controlled by the Indian government. The PDA (Project Development Agreement) was signed in 2014. The project is expected to be finished in September 2022.
The construction of a transmission line to carry the generated electricity to the Dhalkebar transmission line has also begun. To export the generated electricity, a high-capacity 400 KV transmission line will be built from the powerhouse to Dhalkebar (217 km) on the Nepal-India border. Sankhuwasabha, Bhojpur, Khotang, Udaypur, Dhanusha, Mahottari, and Siraha are among the seven districts where 530 towers would be built to reach Dhalkebar.
The project will provide Nepal with 21.9 percent free electricity (197 MW) and a cash gain of Rs 348 billion. Local residents who are affected will receive 1.60 billion shares and 30 units of electricity each month.
According to the PDA agreement, the project will be given over to the Nepalese government 25 years after it is completed.