The Lower Arun Hydropower Project has announced to distribute over Rs 1.4 billion in compensation to households affected by the project.

The 679-megawatt project, which will be constructed in Khandbari Municipality of Sankhuwasabha district, will compensate 268 households, according to Arun Dhiman, CEO of Satluj Jal Vidyut Nigam (SJVN), the Indian hydropower company responsible for building the project.

The affected households are from Chichila Rural Municipality, Khandbari Municipality in Sankhuwasabha, and wards of Salpasilicho Rural Municipality and Shadananda Municipality in Bhojpur district, the company shared.

The Investment Board of Nepal has approved investment of Rs 92.68 billion for the project, which will require acquiring nearly 65 hectares of private land. The project will also acquire an additional 70 hectares of forest land and six hectares of public land. The project is expected to be completed within five years, according to SJVN.

As per the Project Development Agreement (PDA), Nepal will receive 21.9% (197.1 MW) of the electricity generated, with the rest designated for export to India.

The project, being developed under the Build, Own, Operate, and Transfer (BOOT) model, will be transferred to the Government of Nepal after 25 years of operation. -- RSS