Arun Valley Hydropower Development Company Limited (AHPC) was established with the aim to develop, build and operate hydropower projects in Sankhuwasava district of Koshi Zone, Nepal. Achieving its goal, AHPC has developed and built 3,000 kW Piluwakhola Small Hydropower Projects as its first Projects. The time, when the group entered into hydropower business, was the new era for the private sector to start hydropower projects development in Nepal. Power Purchase rate for PPA was not declared, commercial banks were not financing hydropower projects, transmission line and approach road were not in place. Policy and laws were established in 1998 A.D. As this group started feasibility study of Piluwakhola project, PPA price was established, construction of transmission line took place, approach road constructed, banks agreed for term loan financing this project.
The Project construction work was started in 2000 A.D. Adopting old technology as breaking rocks with hands has carried out for the construction work, the project came into operation in October 2003. The Project has already cleared term loan and paid 236 percentage returns as cash dividend & bonus share to shareholders. This project is continuously supplying electricity in the national grid at 33kV voltage level by which people living close to project districts are directly benefited with uninterrupted supply. After commissioning Piluwa Khola Small HEP, AHPC had started to develop and construct Kabeli B-1 HEP (25 MW) in Panchthar and Taplejung District, Koshi Zone, Nepal on which it has 25% investment out of total project cost. The construction of Kabeli B-1 HEP has been already accomplished and will come in operation very soon. And now new Project i.e Kabeli B-1 Cascade HEP (9.94 MW) is going in the Construction phase