Powergrid commissions Arun-3 evacuation line

Power Grid Corporation of India Limited (Powergrid) informed the stock exchanges on March 27, 2026 that it has commissioned the “Transmission System for Power Evacuation from Arun-3 (900 MW) HEP, Nepal of M/s SAPDC – Indian Portion.” The asset has a commercial operation date (COD) of September 3, 2023. The intimation follows a tariff order issued by the Central Electricity Regulatory Commission (CERC) on March 10, 2026.

The project forms part of the SJVN Arun-3 Power Development Company Private Limited (SAPDC) scheme covering the Indian portion in the Eastern Region. It includes the Sitamarhi (Powergrid)–Dhalkebar (Nepal) 400 kilovolt (kV) double-circuit quad transmission line and two associated 400 kV line bays at the Sitamarhi substation. 

CERC approved annual fixed charges of Rs 1,350.68 lakh for 211 days in 2023-24, against the claimed Rs 1,393.37 lakh, including depreciation, interest on loan, return on equity, operation and maintenance (O&M) expenses, and interest on working capital. The capital cost as on COD was approved at Rs 13,006.51 lakh, with additional capital expenditure of Rs 507.15 lakh for 2023-24, subject to truing up.

CERC disallowed part of interest during construction (IDC) and incidental expenditure during construction (IEDC) due to a 126-day delay beyond April 30, 2023. It held that right-of-way issues were resolved by August 17, 2022, and the subsequent delay was not justified. Monsoon rainfall was not accepted as force majeure. Under the implementation agreement, annual fixed charges from COD will be borne by SAPDC. CERC also held that Powergrid’s request for interim tariff was redundant following final tariff determination.

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