The Indian government has approved an investment proposal to build the transmission line in eastern Nepal to export the electricity generated by Arun-3 Hydropower Project being developed by an Indian state-owned company.

In a statement released on Thursday night, the Indian Cabinet said it has approved an investment proposal worth IRs 12.36 billion put forth by SJVN Limited, a central public sector enterprise of India which also the developer 900MW Arun-3. The approval is expected to pave the way for the construction of 217km-long, 400kV power line within the Nepali territory which will be crucial to transmit the electricity generated from the project to India.

In 2017, the Indian cabinet had approved the investment proposal worth IRs 57.32 billion to build the project located at Arun River in Sankhuwasabha district. SJVN Arun-3 Power Development Company Limited, the subsidiary of the Indian state-owned enterprise, had signed the project development agreement with Investment Board Nepal for the development of the hydropower project in November 2014.

As per the agreement, the project developer has to build the 400kV power line to export the electricity to India. The transmission line project, once it comes into operation, can be used by other hydropower projects being developed in the nearby areas.