Govt. of Nepal allotted 679 MW Lower Arun Hydro Electric Project in Nepal through competitive bidding on 29.01.2021. The project is situated in the Sankhuwasabha and Bhojpur districts of Eastern Nepal on river Arun downstream of the existing Arun-3 HEP.   MoU for the Project was signed with IBN, Govt. of Nepal on 11.07.2021.

The project is envisaged to be operated in tandem operation with Arun-3 HEP. The capacity of the project has been revised to 669 MW with an annual generation of 2901 MU in a 90% dependable year.

Project Development Agreement signed with GoN in the presence of the Hon'ble Prime Minister of India and Hon'ble Prime Minister of Nepal on 01.06.2023.