Deal #10369

48.87 ha of private land and 123.22 ha is government land, according to Resettlement and Action Plan. However in the Project Development Agreement the total land is about 180.32 ha.

Reservoir Area and Infrastructure: 136.40645 ha Road: 35.6853 ha

According to the MoU between GoN and SJVN: SJVN agrees to arrange all necessary land, structures, buildings, and utilities owned by third party. In case SJVN fails to acquire such aforementioned land and structures, etc and if so requested, GoN shall make available such land and structures, owned by third parties to SJVN for the construction of the project in accordance with Section 33 of the Electricity Act 2049 within the maximum period of one year after the submission of complete information of the same. If the land is already owned by GoN, the land shall be made available on lease, with either a reasonable annual rent or such other rent as may be required by applicable law, for the period of project license for land needed for permanent use or for such shorter period as may be necessary for temporary use. GoN shall make available such land to SJVN within 180 days after the submission of complete information of required land for the execution of the Project. For rehabilitation of displaced families, rehabilitation and resettlement arrangement would be facilitated by GoN and implemented by the SJVN as per prevailing guidelines and practices.

The project was formed by Nepal Government in 1992. However, NGOs, environmental activists and individuals worried against rampant privatization affecting the culture and natural beauty of the Arun valley expressed concerns In 1995, the World Bank decided to withdraw their support, effectively cancelling the project In November 2014, the project resurfaced and a Project Development Agreement was signed. In 2017, the cabinet of India approved the project for construction.

As of 14 March 2024, about 70 percent of the construction was complete. https://www.urjakhabar.com/en/news/1403968972

The SJVN-Arun 3 Power Development Company (SAPDC) is distributing around NPR 1.3 billion to private land owners as compensation for land acquired for the 900-MW project. The project is acquiring 49 hectares of land from the four VDCs and offering different amounts to land owners based on the type and utility of the land: NPR 825,000 per ropani for sloping land, NPR 907,500 per ropani for normal farm land, NPR 1.04 million per ropani for black cardamom land and NPR 1.2 million per ropani for paddy. However in later sources I found: The compensation was fixed at Rs. 500,000 per ropani by the Compensation Determination Committee (CDC) headed by the Chief District Officer of Sankhuwasabha. Rs. 30 million has been estimated for compensating land-owners.

The lease fee for acquired forest is set at Rs 15,000 per hectare annually with 10 percent escalation every three years, said Madu Bhetuwal, joint secretary of Investment Board Nepal (IBN). They would also have to plant twice the number of trees they cut. plant 25 trees to compensate for each tree lost within the national park area. However there was some conflict as the policy regarding using forest in development project changed after the PDA was signed. As per the laws prevailing at the time the PDA was signed, the project developer has to pay lease fees to the government and plant double the number of trees that are cut down at the leased land. After the Forest Ministry asked the SAPDC to buy an equivalent amount of land and create a forest on it, the developer refused. The ministry’s demand is based on an upcoming guideline governing the acquisition of forest land for infrastructure development. SAPDC asked for compensation from the government for the change in law. In the end the PDA was followed. https://kathmandupost.com/money/2017/02/13/developer-claims-compensation-citing-change-in-law