Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The under-construction Kimathangka Arun Hydropower Project has distributed over Rs 180 million (18 crore) in compensation to project-affected locals, as the Rs 93.8 billion mega hydropower project moves forward at an accelerated pace.
The 454 MW project, located in Bhotkhola Rural Municipality–2 of Sankhuwasabha, has been providing compensation to landowners impacted by land acquisition for infrastructure development.
According to officials at the District Administration Office, compensation distribution began on Chaitra 9, with 26 landowners already receiving payments totaling more than Rs 180 million. Project Manager Ashok Pandit confirmed that the total compensation liability stands at around Rs 450 million, to be distributed among affected residents.
Land Acquisition and Impact
The project will impact approximately 700 ropani of land, affecting around 150 households across former wards 1, 3, 4, and 6 of Bhotkhola. The compensation rate has been fixed at up to Rs 690,000 per ropani, as determined by a meeting of the District Administration Office on Poush 8, 2082 BS.
Project Development and Investment Structure
The project is being developed by Hydroelectricity Investment and Development Company Limited. It involves diverting water from the Arun River through a 6-kilometer tunnel from Chepuwa to the powerhouse site at Lingam.
With an estimated investment of Rs 93.8 billion, the project follows a mixed financing model:
51% investment from the Government of Nepal49% from the general publicTimeline and Strategic Importance
The project aims to begin electricity generation within five years of construction commencement, contributing significantly to Nepal’s energy security, export potential, and broader economic growth.
Hydropower remains a key pillar of Nepal’s economic strategy, and large-scale projects like Kimathangka Arun are expected to enhance domestic supply while positioning Nepal as a regional energy exporter.
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