Construction of Lower Arun Hydropower Project gets momentum

Published On: January 21, 2024 08:00 AM NPT By: Republica | @RepublicaNepal

The hydel project to acquire land plots of 656 individuals in Sankhuwasabha district

KATHMANDU, Jan 21: The 669 MW Lower Arun Hydropower Project has expedited the work of land acquisition to give momentum to construct the project.

The District Administration Office (DAO), Sankhuwasabha, in this regard issued a public notice on Saturday to acquire land plots that belong to 656 individuals. According to the DAO, the land plots located in ward numbers 1, 3 and 8 of Diding Rural Municipality, ward numbers 2,3,4,5,6 and 7 of Sitalpati Rural Municipality, ward number 9 of Panma Rural Municipality and ward numbers 4, 6 and 7 of Manakamana Rural Municipality of Sankhuwasabha district will be acquired for the project.

The DAO has asked the concerned land owners to come up with necessary clarification if they have any reason not to permit the proposed land plots for acquisition. Likewise, the local administration has also barred the concerned individuals from constructing permanent structures on the land plots from Saturday, the day of the release of the public notice.

The government has awarded the contract to construct the hydropower project to Satluj Jal Vidyut Nigam, a hydropower generating company of India. The company has also been undertaking the construction of the Arun-III Hydropower Project.

During Prime Minister Pushpa Kamal Dahal’s visit to India in June, a project development agreement (PDA) was signed between Nepal and India to construct the Lower Arun Hydropower Project. The Cabinet meeting later endorsed the PDA.

As per the bilateral agreement, the entire power produced from the project will be exported, enhancing Nepal’s capacity to sell its electricity to its southern neighbor.

The Investment Board Nepal (IBN) had approved an investment of Rs 92.68 billion for the 669-MW capacity project. According to the IBN, the developer should complete the detailed project study of the project and submit the detailed project report for approval to the board within two years from the agreement date. The project will be built under the build, own, operate and transfer (BOOT) model.

The project will not have any reservoir or dam and will be a tailrace development of Arun-III hydro project, which will mean water re-enters the river for the Lower Arun project.