It is constructed by SJVN Arun III Power Development Company Private Limited, a wholly owned subsidiary of SJVN Ltd.[1][2] The estimated cost is US$1.6 billion including $156 million to develop the transmission line.

[3] The project consists of a 70m high, 466m wide concrete gravity dam across the Arun River which will be able to store 13.94 million cubic meters of water.

269 families will be affected by the project construction, and they will be compensated by being provided with 30 units of electricity each free of cost every month.

However, NGOs, environmental activists and individuals worried against rampant privatization affecting the culture and natural beauty of the Arun valley expressed concerns.

There was also a debate for the road to the project area concerning deforestation and habitat fragmentation.

The surplus power from the project will be exported to India from Dhalkebar, Nepal to Muzaffarpur, Bihar.