Lower Arun Hydroelectric Project (LAHEP) 669 MW, lies in the Sankhuwasabha and Bhojpur Districts of Nepal. SJVN was selected through international competitive bidding for development of Lower Arun HEP. MoU was signed between SJVN Ltd. & Investment Board of Nepal (IBN) at Kathmandu, Nepal on 11 July, 2021. Project has been allocated to SJVN on Build Own Operate Transfer (BOOT) basis. The project is envisaged as a downstream extension of 900 MW Arun-3 Hydroelectric Project utilizing 344.68 cumecs of design discharge available at tail race outfall of Arun-3 HEP. The water coming out after generation from Arun-3 power station will be tapped from Arun-3 Tail Race pond/Lower Arun Intake pond into the Intake of Lower Arun HEP. Both the Projects i.e. Arun-3 HEP and Lower Arun HEP after completion are to be operated in Tandem Operation System (TOS) like SJVN's 1500 MW Nathpa Jhakri HPS & 412 MW Rampur HPS in Himachal Pradesh, India.