Kimathanka: Construction work on the power house of the 900-megawatt Arun III hydropower project, currently under construction in Sankhuwasabha, has come to a standstill. The halt in construction is attributed to local residents demanding compensation for land acquisition along the Chhyangkuti-Diding Pukhuwa approach road to the Arun III project site.

For approximately three weeks, local residents have protested, leading to the suspension of work on both the power house and the project's entrance route. Jani Kumar Rai, coordinator of the Arun Entrance Route Struggle Committee, stated that the government's failure to address their demands forced them to take to the streets.

The primary demand of the local residents is compensation for the land slated for acquisition along the Chhyangkuti-Diding Pukhuwa road. Currently, 454 ropanis of land are yet to be acquired from Chhyangkuti to Pukhuwa. The protesting residents have issued a warning, asserting that they will continue their protest until the compensation is deposited into the account of the district administration office. They have been demanding compensation for the past seven years.

Under the terms of the project development agreement with the Indian construction company, Satluj Jal Vidyut Nigam, responsible for constructing the project, the Government of Nepal is obligated to pay Rs 80 million daily in the event of construction being halted due to local protests.

On May 9, 2023, the compensation determination committee, tasked with compensating the affected local residents, had decided to provide Rs 1.1 million in compensation per ropani of land acquired along the Chhyangkuti-Diding road for the project. However, the affected residents are yet to receive the compensation.

Once completed, the Arun III hydropower project is expected to provide Nepal with 197 megawatts of electricity. The estimated cost of the project is over Rs 115 billion, and it currently employs more than 3,000 workers.