Government decision for Land compensation to the communities affected by Linked Project of 900 MW Arun– III hydro Power

LAHURNIP
LAHURNIP
Updated on April 10, 2026

Council of Ministers of the government of Nepal has made decision on 2 November, 2023 to provide compensation of the lands (454 Ropani / 2.5 million sq.ft) that have been grabbed in the pretext of constructing 24 KM link road from Khandbari Municipality-4 to Chichila Rural Municipality-2, Diding without compensation and consent of affected communities.

The road is to connect the powerhouse of Arun-III hydro power project that is located in Pukhuwa, Diding with the main highway in Chhayangkuti, Shankkhuwasabha.

900 MW Arun – III hydro power project, located in Shankhauwasabha district (the ancestral lands of many Indigenous Peoples), is being developed by Satlaj Jal Vidyut Nigam (SJVN), Indian state-owned Corporation.

The road construction is causing destruction of lands, forest, environment and livelihoods of affected communities. The affected communities have been defending their lands and territories for the past 7 years demanding justifiable compensation and their participation in decision making processes that concern them. 

The affected communities carried out 56 days long protests that has been started from 2 September 2023 to put pressure on the government and company to get their demands heard.

"We had a meeting with the Prime Minister and other concerned stakeholders on 1 November 2023 on the issue. The Prime Minister assured that compensation would be distributed within 3 months. Therefore, we have decided to put our struggle on hold for the time being "said Mr. Jani Kumar Rai, the coordinator of the struggle committee.