Page 43 - Policy Economic Report - June 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Addressing the gathering, the Prime Minister of Nepal said that this breakthrough brings us closer to the
goal of providing clean, renewable energy and in contributing to the sustainable development of the
region. He expressed his appreciation for the ongoing efforts and reaffirmed the commitment of the
Government of Nepal to facilitate the timely completion of Arun - 3 Hydro Electric Project.

India’s Ambassador to Nepal Shri Naveen Srivastava recalled in his address that the Prime Minister of India
Shri Narendra Modi and his Nepali counterpart Shri Pushpa Kamal Dahal ‘Prachanda’ had agreed last year,
to the long-term power trade agreement for the import of electricity from Nepal. He said that completion
of export-oriented 900 MW Arun 3 Hydro Electric Project will be a major milestone for this.

CMD, SJVN, Shri Sushil Sharma apprised the Prime Minister of Nepal that the successful breakthrough of
the Head Race Tunnel marks a significant milestone in the construction of the 900 MW Arun-3 Hydro
Electric Project. He added that the successful completion of the Head Race Tunnel is a monumental
achievement in the journey to harness the hydropower potential of the Arun River.

The CMD briefed the Prime Minister about the progress of the project and the associated 217 km. long
transmission line. He informed that more than 74% of the project works have been completed and that
the remaining works are going on in full swing. He added that Arun- 3 Hydro Electric Project will start
generating electricity by next year and that it has the potential to generate 3,924 million units of electricity
every year.

The CMD said: "We are grateful for the unwavering support from the Government of Nepal, local
authorities, and the community. This project symbolizes the strong partnership between India and Nepal
in the energy sector and our collective efforts to achieve energy security and environmental
sustainability."

Currently, SJVN is executing 2,200 MW of three Hydroelectric Projects on Arun River basin in Nepal.

Ministry of Power takes comprehensive measures to ensure adequate power supply during increased
summer demand

The Northern Region of India has been experiencing high demand conditions due to a prevailing heat wave
since 17th May 2024. Despite these challenging conditions, the highest ever peak demand of 89 GW in
the Northern Region was successfully met on 17th June 2024. This achievement was made possible by
importing 25 to 30% of the region's power requirement from neighboring regions. All utilities have been
advised to maintain a high state of alert and minimize forced outages of equipment. According to the IMD
forecast, heat wave conditions in North-West India are expected to abate from 20th June.

In response to the increased demand and to ensure adequate power availability across the country, the
Ministry of Power has implemented a series of measures to meet the highest ever peak demand of 250
GW during this ongoing summer season. These measures include:

1. Imported Coal Based (ICB) Plants Operation: Directions have been issued under Section 11 of the
Electricity Act, 2003, for ICB plants to continue the generation support during the high demand
period.

2. Maintenance Scheduling: Minimum planned maintenance of generating units has been
scheduled during this period. Efforts are being made to minimize partial and forced outages to

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