Land acquisition for MCC transmission line projects: CDO-led committee to be formed for evaluating compensation

As the Millennium Challenge Account (MCA) Nepal gears up to develop the transmission line project, a single committee under the chairmanship of the chief district officers (CDOs) is being formed in different districts to evaluate the compensation of the land required for the transmission line to be built with the grant of the Millennium Challenge Corporation (MCC) of the US government. Currently, MCA-Nepal, the agency to implement the MCC compact in Nepal, is collecting the details of the land required for the transmission line. The CDO-led committee will assess the compensation to be paid for the land acquired for the construction of the transmission line. The committees will have district heads of the Nepal Electricity Authority as expert members.

The Ministry of Finance sent a proposal in this regard to the cabinet last Friday. According to a ministry official, the committees will be formed after the proposal is endorsed by the cabinet.

Two laws will have to be taken into account to determine compensation for land required for this project. The land required for the tower of the transmission line should be brought in the name of MCA-Nepal; for that committees under the chairmanship of CDOs are to be formed to determine the compensations, as per the Land Acquisition Act, 2019. However, the land over which the transmission line will be built and lands on both sides do not come under the jurisdiction of MCA-Nepal. Such land will be in the name of the current owner. However, the landowner should be compensated for the land used by MCA-Nepal for building the transmission line. For this purpose, Electricity Act, 1992, and Electricity Regulations, 1993 are attracted. There are provisions in the Act and Regulations to determine the compensation by forming a committee under the chairmanship of an individual appointed by the government. As two different Acts have to be taken into account, two different committees have to be formed for the compensation of land to the people affected by the project. As it is likely to delay the project, a single committee has been proposed to settle the land compensation issue smoothly. MCA-Nepal has to acquire lands in Chitwan, Nawalparasi and Nawalpur, Kavrepalanchok, Kathmandu, Dhading, Makwanpur, Palpa, Rupandehi, and Tanahun for the transmission line project. According to MCA-Nepal, details of the lands are being collected in nine districts except Kathmandu and the process of acquiring land in the capital will start soon. Currently, MCA-Nepal is expediting works related to transmission lines and substations construction. As Nepal government and MCC have agreed to start entry into force of the agreement in August this year, MCA Nepal is speeding up complete the preparatory works.