The Lower Arun project will provide compensation of one billion forty million.

The Lower Arun hydropower project, which has a 669 MW capacity and is planned to be built in the Khandbari municipality of Sankhuwasabha, will provide compensation of 1.4 billion rupees. The Sutlej Company claims that compensation totaling one billion forty million rupees will be given to 268 people that were directly impacted by the 669 MW Lower Arun Project.

268 families will be directly impacted by the Lower Arun Hydropower Project, according to the Sutlej Company. The Lower Arun Project, which will be built in the Sankhuwasabha municipalities of Khandbari and Chichila rural municipalities, has a 669 MW total capacity. The project will impact Salpasilichho Rural Municipality-1, Khandbari Municipality, Bhojpur's Shadanand Municipality, and Sankhuwa Sabha's Chichila Rural Municipality.

The Lower Arun hydropower project was awarded to an Indian business by the government. Sutlej Vidyut Nigam (SJVN) was selected to receive the Lower Arun hydropower project, which has a 679 MW capacity. Presently, the Arun 3rd hydropower project is being built by Sutlej Vidyut Nigam, an Indian firm.

In order to build the lower Arun project, water was transported to Khandbari Municipality-2 via a 17.4-kilometer tunnel following the 900 megawatt Arun third hydroelectric power generating. Around 65 hectares of land will be purchased for the project's construction, according to the Lower Arun Hydropower Project Rehabilitation and Rehabilitation Draft Report put forth by Indian construction company Sutlej.

Sutlej Company would also purchase 6 hectares of government property and 70 hectares of forest area. Following confirmation of the formation of the Lower Arun, the Indian Sutlej Company, the builder, initiated talks with the local population. There will be five years of construction. The projected cost comes to 92.67 billion.

The primary structure of the lower Arun project will be constructed in Khandbari municipality and Chichila rural municipality in Sankhuwasabha. 21.9 percent (197.1 MW) of the project's electricity will be provided for free to Nepal; the remainder electricity will be sent to India.

The Board of Investment and the Indian business signed a Project Development Agreement (PDA) that states that the project will be constructed under the Build, Own, Operate and Transfer (BOOT) framework and that after 25 years of commercial production, the government will receive free electricity. The project has a five-year building timeframe set in stone.