KATHMANDU: Construction work on the 900 MW Arun III Hydropower Project has come to a halt after workers staged a protest over unpaid wages in Sankhuwasabha.
Around 1,500 workers employed at the project’s powerhouse site in Chichila Rural Municipality-2, Pukhuwa, stopped work on Wednesday, citing non-payment of salaries and allowances for the past six months.
Workers and subcontractors launched the protest early in the morning, bringing construction activities at the site to a complete standstill. The disruption has significantly affected the progress of the project.
The construction of the powerhouse has been entrusted to Patel Engineering, while the overall project is being developed by Satluj Jal Vidyut Nigam.
Protesting workers said they were compelled to halt work after the company failed to show seriousness in ensuring timely wage payments.
Chief District Officer Srijana Thapaliya confirmed that the workers had begun protests demanding payment of pending wages. She added that the issue had been previously raised with the District Administration Office, which had informed the concerned company.
More than 3,000 Nepali and Indian workers are currently engaged in the project, with construction work underway at the dam site in Fakshinda and the powerhouse in Pukhuwa.
The project, estimated to cost around Rs 120 billion, aims to be completed within five years. Under the agreement, affected families are entitled to 30 units of free electricity.
According to the development agreement, Nepal is expected to receive benefits worth Rs 340 billion over 25 years through royalties, free electricity, income tax, VAT, and customs exemptions from the project.
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