Authorities concerned have distributed Rs 990 million in compensation to residents affected by the 669 MW Lower Arun Hydropower Project, which is under construction in Sankhuwasabha district.
The main structure of the project is located in Chichila Rural Municipality and Khandbari Municipality. According to Ramji Poudel, Information Officer at the District Administration Office, compensation has so far been distributed to 253 families in these areas.
Poudel said landowners in the project-affected area have been compensated at rates ranging from Rs 340,000 to Rs 500,000 per ropani. In total, 656 individuals living within the project site will receive compensation. The government plans to distribute Rs 1.9 billion in total, covering both private and public land. The project requires 184 hectares of land, including 65.96 hectares of private land.
The Lower Arun Project is being developed by India's Sutlej Jal Vidyut Nigam (SJVN), the same company constructing the 900 MW Arun III Hydropower Project. The Lower Arun will utilize water discharged from the Arun III through a 17.4-km tunnel that connects to Khandbari Municipality-2, Chewabesi.
Under the Project Development Agreement (PDA), Nepal will receive 21.9% (197.1 MW) of the electricity generated free of charge, while the rest will be exported to India. Built under the Build, Own, Operate and Transfer (BOOT) model, the project will be handed over to the Government of Nepal 25 years after the start of commercial production. The construction is expected to take five years.
Rs 410 Million Paid for Arun III Access Road Compensation
An additional Rs 410 million has been distributed as compensation for 454 ropanis of land required for the 24.5 km Chyangkuti–Diding section of the access road to the Arun III Hydropower Project in Sankhuwasabha.
So far, a total of Rs 417.4 million has been paid out. According to Information Officer Poudel, 110 out of 134 affected families have received compensation.
The distribution of compensation resumed following a Supreme Court order on January 1, 2025. Earlier, the developer, SJVN Arun-III Power Development Company (SAPDC), had deposited Rs 530 million with the District Administration Office for this purpose. On May 9, 2023, the project had decided to pay Rs 1.175 million per plantation as exemption compensation for the Chyangkuti–Diding section.
As per the PDA, the Arun III project will offer local residents shares within a year of commencing commercial operation. The project will also provide Rs 1.6 billion in financial support to the local population.
With an estimated cost of Rs 104 billion, Arun III is expected to deliver 21% of electricity free to Nepal and contribute Rs 348 billion in overall economic benefits. Each directly affected household will receive up to 30 units of free electricity per month. The project will be transferred to the government 25 years after completion. Currently, around 4,000 workers, including both Nepali and Indian nationals, are involved in its construction. -- RSS
