The list of allegations surrounding a hydropower project in Nepal is extensive: claims of forging signatures, signing children’s names on contracts, creating false reports, bulldozing through farmlands under the cover of darkness, and capturing sacred animals.
Karma Bhutia, an activist from the Chyamtang region and an advisor to the Chyamtang-Kathmandu Welfare Society, has spent considerable time with legal documents pointing to these issues. As he spoke with Mongabay, the pile of papers before him, enough to fill a book, laid bare the alleged wrongdoings of Sangrila Urja Pvt. Ltd., a Nepali hydropower company.
“They [the company] put price tags on our rivers, our sacred forests and biodiversity without asking us what we wanted,” said Karma, clearly frustrated. “If not for the community’s resistance, we would have lost everything to the government.”
Nepal is undergoing a hydropower construction boom to meet the growing demand for energy. The Himalayan Sankhuwasabha district in Lungbasamba, where Bhutia resides, is no exception. However, with the expansion of this infrastructure, conflicts with Indigenous communities that rely directly on the land have escalated. These communities report a series of allegedly illegal activities and violations of their rights, yet many of these projects continue, and the voices of these communities often seem unheard. This particular dispute briefly caught global attention after actor Leonardo DiCaprio shared his support on social media.
Mongabay’s investigation has verified many of the claims and confirmed instances of fabricated information in the environmental impact assessment (EIA), lack of proper consultation with the community, and the forging of signatures. Our analysis also revealed that the proposed project site is 90 times larger than what was approved. Despite objections from the community, construction and road-building for the Chhujung Khola Hydropower Project continued under the cover of night until May 2024. Now, both sides are awaiting an upcoming lawsuit to resolve the conflict.
The director of Sangrila Urja Pvt. Ltd., Shreelal Chapagain, denies all allegations made by the locals, including the evidence gathered by Mongabay. He insists that the project is progressing legally and with the community’s consent. When questioned about the discrepancies in the EIA report and the alleged fabrications, Chapagain referred to the company chairperson and contractors for further details, but they could not provide evidence to support their claims. Despite tensions with some community members, Chapagain remains optimistic, stating, “There is no point in discontinuing it now that we have completed almost 100% of the paperwork and legal processes.”
Sankhuwasabha district, nestled between the sacred Kanchenjunga and Makalu mountains, is home to numerous Indigenous villages, including the Bhote Singsa people, who are one of Nepal’s marginalized communities.
In May 2024, Kijamajhiya Bhote, a 59-year-old resident of Chyamtang village, awoke to find that a temporary stone fence he had built the previous day to protect his land had been demolished. The workers of Sangrila Urja Pvt. Ltd. had destroyed the fence to make way for a road for the hydropower project.
“In the night, a few men hired by the hydropower company destroyed the fence and threatened me not to take action against them,” said Kijamajhiya. He filed a complaint with the local rural municipality, but to no avail. “The men claimed they had the authority to build roads, but this is my ancestral land, and I never gave them permission,” he added.
The project, originally planned to develop 20 hectares (50 acres) of land, will clear pasturelands and forests that three villages have relied on for generations. Since the project began in 2021, villagers in Chyamtang, Ridak, and Thudam have seen roads being built that threaten the Lungbasamba region.
Locals in Chyamtang rely on collecting and trading traditional plants and medicines, while yak herders in Thudam and Ridak are particularly vulnerable. The proposed project area includes kharkas (pasturelands) that the nomadic yak herders of Thudam depend on for their livelihoods.
“The yak herding culture, which is the lifeblood of the herders, will be destroyed if the project progresses,” said Lakpa Angjuk Bhote, secretary of the Chyamtang-Kathmandu Welfare Society.
The Chhujung River, located in this region, is part of a biocultural heritage site that is home to diverse species, including the red panda, Asiatic black bear, blue sheep, and snow leopard, as well as plants such as the Himalayan goral and musk deer. The river is also significant to the local communities for their spiritual and cultural practices.
As the nomadic herders of Thudam and Ridak take their yaks to glacial lakes to cool off during the summer, they face threats not only to their pasturelands but to their sacred forests and glacial lakes, which are essential to their traditions and livelihood.
The company’s plan to use explosives for construction has raised significant concerns. The EIA states that the company intends to use around 192,000 tons of explosives and 188,000 detonators, which would impact glaciers located as close as 2 km (1.25 miles) from the project site.
“The rivers, lakes, and forests are sacred to us,” Lakpa said. “The destruction of these untouched sacred spaces would be a desecration of our cultural faith.”
The community was surprised to learn of the planned use of explosives, as this was not disclosed to them until they read the information in the EIA. They were equally shocked to learn that the Ministry of Forests and Environment had approved the EIA without their free, prior, and informed consent.
The EIA itself has been the subject of criticism. Sources familiar with the situation told Mongabay that the report contains fabricated details, some of which appear to have been copied from another project’s report. The EIA includes inaccurate data on the species in the region and does not address the impact of the project on all winter pasturelands used by the herders. Additionally, the report failed to mention key species, such as the red panda and the blue sheep, which are crucial to the area’s biodiversity.
Mongabay also georeferenced the maps provided by the company, revealing that the proposed project area is 90 times larger than reported in the EIA. The site covers approximately 1,800 hectares (over 4,400 acres), while the EIA only mentioned 20 hectares (50 acres), suggesting that the company may have understated the scope of the project. The EIA also incorrectly states that only 952 trees will be cut down, though locals believe the number may be higher.
Further complicating the situation is the fact that the project is extending into a river that was not mentioned in the EIA. The Chhujung and Chhunjam rivers meet to form the Arun River, but only Chhujung is mentioned in the EIA. The company is also seeking to cover the Chhunjam River, which has been deemed illegal by local legal experts.
This is not the first time that an EIA report has come under scrutiny. In 2022, the Supreme Court of Nepal canceled a mega airport project due to a flawed EIA that contained copied content from another project’s report.
The ongoing controversy surrounding the Chhujung Khola Hydropower Project serves as a stark reminder of the challenges Indigenous communities face in the face of development projects that threaten their land, culture, and livelihoods. The community’s resistance, however, shows the resilience of these marginalized groups in defending their rights and preserving their heritage. The outcome of the lawsuit and the continued scrutiny of the project may yet determine the future of this region and the rights of its people.
