Kathmandu - Compensation has been distributed to residents impacted by the 669 MW Lower Arun Hydropower Project currently being developed in Sankhuwasabha district. The project’s core infrastructure will span across Chichila Rural Municipality and Khandbari Municipality.
More than Rs 990 million has already been disbursed to families affected by land acquisition in the project area. According to Ramji Poudel, Information Officer at the District Administration Office, a total of Rs 999.839 million has been distributed to 253 families to date.
The total land required for the Lower Arun project is approximately 184 hectares, of which 65.96 hectares are privately owned.
Land prices in the affected areas ranged from Rs 340,000 to Rs 500,000 per ropani, depending on location.
A total of 656 individuals are eligible to receive compensation.
The government has earmarked Rs 1.9 billion in total to be distributed to landowners whose land has been acquired for the project.
The Lower Arun project will utilize discharged water from the upstream 900 MW Arun III Hydropower Project, which is under construction in Makalu Rural Municipality. The water will be diverted via a 17.4-kilometer tunnel to a power station in Chewabesi, Khandbari Municipality-2.
Like Arun III, the Lower Arun is being developed by India’s Sutlej Jal Vidyut Nigam (SJVN), under a Build-Own-Operate-Transfer (BOOT) agreement with the Government of Nepal.
According to the Project Development Agreement (PDA):
Nepal will receive 21.9% of the total electricity produced (197.1 MW) free of cost.
The project is to be completed within five years.
After 25 years of operation, the project will be transferred to the Government of Nepal.
In addition, the District Administration Office has distributed an extra Rs 410 million in compensation for land acquired for the Arun III access road — specifically, for 454 ropanis of land along the 24.5 km Chyangkuti–Diding section.
Although initial compensation was paid back in 2046 BS, landowners had not received exemption compensation for certain areas. Following a Supreme Court directive issued on 17 Poush 2081, payments resumed.
So far:
Rs 417.439 million has been disbursed.
Out of 134 families, 110 have received their exemption compensation.
The developer, SJVN Arun III Power Development Company (SAPDC), deposited Rs 530 million in an escrow account to fulfill these obligations.
Compensation was set at Rs 1.175 million per ropani for this section.
The Arun III project, with a projected cost of Rs 104 billion, will:
Provide 21% of electricity to Nepal for free
Generate approximately Rs 348 billion in overall economic benefits
Supply up to 30 units of free electricity per month to directly affected households
Allocate Rs 1.6 billion in shares to locals within one year of commercial operation
Currently, around 4,000 workers, both Nepali and Indian nationals, are engaged in the construction of Arun III.
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๐ฐ Source: UrjaSanchar.com