Workers halt construction at Arun III hydropower project over unpaid wages

Sankhuwasabha. Construction work at the powerhouse of the 900-megawatt Arun III hydropower project in Sankhuwasabha has come to a standstill after workers went on strike over unpaid wages. Approximately 1,500 workers have halted operations, citing that they have not received their salaries and allowances for the past six months.

Workers and subcontractors stationed at Pukhua in Chichila Rural Municipality-2 began their protest early this morning, completely disrupting project activities. The construction is being handled by the Indian firm Patel Engineering. Workers claim they have stopped work because the company has failed to address their grievances regarding six months of unpaid wages.

The workers and subcontractors initiated the strike to express their dissatisfaction with the construction company's lack of interest in timely salary payments. Chief District Officer Sirjana Thapaliya confirmed that she has received reports of the protest by the powerhouse workers demanding their overdue wages.

She noted that the District Administration Office had previously informed the relevant company after workers submitted a formal request for timely payment.

The 900-megawatt project is being developed by the Indian company SJVN. More than 3,000 Indian and Nepali workers are employed across the dam site in Phaksinda and the powerhouse area in Pukhua. The project, which aims to be completed within five years, has an estimated cost of NPR 120 billion.

The project has an agreement to provide 30 units of free electricity to affected families. Chief District Officer Thapaliya stated that the development agreement stipulates that Nepal will receive NPR 340 billion in royalties over 25 years, along with free electricity, income tax, VAT, and customs duty exemptions.