Sunday, February 24, 2019

Almost half of Arun III-affected buy land with compensation

Almost half of the Arun III hydropower project-affected locals bought land from the compensation money they received from the project developer.
"Some 46 per cent of locals affected by the 900-megawatt SJVN Arun III Hydropower Development Project have purchased land with the compensation money that they received for their land that was acquired by the project," according to a study report.
The study 'Use of cash survey (Arun III) Hydropower Project’ conducted by the Investment Board Nepal (IBN) reveals that around half the affected people had used the compensation to purchase fixed assets like land and houses. The board has said that the main purpose of the study was to confirm how the affected people had utilised the cash compensation that they had received. "Most of the affected people have procured their new property close to their original dwellings," the report reads, adding that only a small number of families have purchased agricultural land. "Only 15 per cent of the project affected families who were previously engaged in agriculture were interested to continue with their profession after receiving the compensation."
According to the project that is located in Sankhuwasabha district, the locals were provided Rs 8.25 lakh per ropani as compensation for uncultivated land and Rs 9.07 lakh per ropani for cultivated land. Likewise, compensation of Rs 1.43 million per ropani was fixed for cardamom fields and Rs 1.2 million per ropani for land with crops. The project has already paid land compensation worth Rs 1.30 billion and will spend around Rs 2 billion for land acquisition process. According to the project, it still needs to acquire 33 hectares of land. It has already provided compensation for 50 hectares of land in the affected district.
Among those who bought fixed assets, some 49 per cent have bought or constructed houses, it adds. "After fixed assets, they have used their compensation money in services like education and health as the most preferred area of investment as 17 per cent used the compensation in education and health services."
But some 15 per cent of the affected households used the compensation in repaying family loans, while almost 11 per cent used it in unspecified areas, the study report reveals, adding that just five per cent of the families used the compensation in businesses.
The government will also get Rs 330 billion as royalty for a period of 20 years – from the hydropower project – apart from distributing shares to the locals and free energy to the affected area. The Arun III hydropower project – an export-based hydropower project – that will generate 400 million units of power every year will also provide 21.9 per cent of energy free of cost. Arun-III will bring the largest ever foreign direct investment (FDI) from India worth Rs 102 billion.

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