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4 Jul 2025

Nepal: Civil society report alleges that Indigenous Peoples rights were denied in hydropower project development

The new report "Hanging by A Thread: Indigenous Peoples Rights in Renewable Energy Transition" exposes how Development Banks and the Nepalese government have systematically failed to protect Indigenous Peoples' rights in four major hydropower projects: Likhu, Tanahu, Upper Trishuli-1, and Upper Arun.

Despite being funded by development banks that require Free, Prior, and Informed Consent (FPIC), the report finds that FPIC processes were either entirely bypassed or reduced to performative consultations.

Communities have reported facing retaliation for demanding their rights, including detention, false charges, and militarization of their lands.

The report calls for development banks to ensure meaningful Indigenous participation and for Nepal's government to officially recognize Indigenous land rights before implementing infrastructure projects.

The Business & Human Rights Resource Centre contacted all the entities named in the report including Nepal Electricity Authority (NEA), Nepal SBI Bank, IDBI Bank, MV DUGAR, Tanahu Hydropower Limited, Manitoba Hydro International, Song Da Corporation JSC, Kalika Constructions, Power China, Lahmeyer International, Doosan Heavy Industries & Construction Ltd, Andritz, International Hydro Association, Nepal Water and Energy Development Co. Ltd., Upper Arun Hydro Electric Ltd, and SJVN. Ltd. We received a response from SBI, Lahmeyer International, Andritz, International Hydropower Association and Upper Arun Hydro Electric Ltd. We did not receive a response from the others. The responses are linked.

Company Responses

Manitoba Hydro

No Response

Song Da Corporation JSC

No Response

Lahmeyer View Response
Doosan Heavy Industries & Construction (part of Doosan Group)

No Response

Andritz View Response
International Hydropower Association View Response
Nepal Water and Energy Development Company Pvt. Ltd. View Response
Nepal Electricity Authority (NEA)

No Response

Nepal SBI View Response
IDBI Bank

No Response

MV Dugar Group

No Response

Tanahu Hydropower Limited

No Response

Kalika Construction Pvt. Ltd. (Kalika Power Company)

No Response

Power China (Power Construction Corporation of China)

No Response

Upper Arun Hydroelectric Project View Response
Satluj Jal Vidyut Nigam (SJVN)

No Response

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