Kimathanka Arun Hydropower Project distributes more than NPR 180 million in compensation to affected locals

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Sankhuwasabha: Over NPR 180 million in compensation has been distributed so far to locals affected by the Kimathanka Arun Hydropower Project.

Ghangri Lama, the Chief Administrative Officer of the District Administration Office, Sankhuwasabha, stated that compensation distribution began on March 23, 2026 to residents affected by the ongoing 454 MW project in Bhote Khola Rural Municipality–2.

According to project manager Ashok Pandit, 26 landowners in the project-affected area have so far received approximately NPR 180 million in compensation.

The project plans to distribute around NPR 450 million in total to affected locals. This amount will be provided to landowners whose land was acquired for the construction of the project.

At a meeting held on December 23, 2025 at the District Administration Office, Sankhuwasabha, the maximum land compensation per ropani was set at NPR 690,000.

Approximately 700 ropani of land in the former Bhote Khola wards 1, 3, 4, and 6 has been acquired for the construction site, which will affect around 150 households.

The project is being constructed by Arun Power Generation Company Limited. Water from the Arun River at Chepu, Bhote Khola–2, will be diverted through a roughly 6 km tunnel to the Lingma powerhouse to generate electricity.

The project is estimated to cost about NPR 9.38 billion, with 51% of the investment from the Government of Nepal and 49% from the public. The goal is to begin electricity production within five years of the project’s construction start date.

 

Jalasarokar