New Delhi — Power Grid Corporation of India Limited has announced the successful commissioning of the Transmission System for Power Evacuation from the Arun-3 (900 MW) Hydroelectric Project in Nepal – Indian Portion, marking a major step in strengthening cross-border energy cooperation between India and Nepal.
Although the system became operational on September 3, 2023, the company confirmed its formal commissioning in line with regulatory approvals, including compliance with the Central Electricity Regulatory Commission framework and a recent order (210/TT/2024) dated March 10, 2026.
Project Overview
The transmission system has been developed to facilitate the evacuation of electricity generated from the 900 MW Arun-3 Hydroelectric Project in Nepal. The project plays a crucial role in:
- Delivering clean hydropower from Nepal to India
- Enhancing grid stability in northern India
- Strengthening regional energy integration
The execution of the project was carried out by SJVN Arun-3 Power Development Company (SAPDC), a subsidiary involved in developing the Arun-3 hydropower facility.
Regulatory Compliance
POWERGRID confirmed that the project has been commissioned in accordance with Regulation 5(2) of the CERC (Terms and Conditions of Tariff) Regulations, 2019. The commissioning also aligns with the directives outlined in the latest CERC order, ensuring adherence to tariff and operational guidelines.
Strategic Significance
This project is a key milestone in India’s broader strategy to expand cross-border electricity trade and integrate renewable energy sources into the national grid. The Arun-3 project, being a hydropower initiative, contributes to:
- Lower carbon emissions
- Diversification of energy sources
- Improved energy security
It also reinforces India’s role as a regional energy hub, enabling efficient power exchange with neighboring countries.
POWERGRID’s Expanding Role
Headquartered in Gurugram, Power Grid Corporation of India Limited is India’s leading power transmission utility and a central public sector enterprise. The company continues to play a pivotal role in building large-scale transmission infrastructure, both domestically and internationally.
Through initiatives like the Arun-3 transmission system, POWERGRID is:
- Enhancing interstate and international grid connectivity
- Supporting renewable energy integration
- Promoting sustainable and reliable electricity transmission
Outlook
The successful commissioning of this transmission system underscores growing India–Nepal energy cooperation and highlights the importance of regional partnerships in achieving long-term sustainability goals. As energy demand rises and clean energy becomes a priority, such cross-border infrastructure projects are expected to play an increasingly vital role in the region’s power landscape.