Koshi Province
East-West rail-affected receive neither compensation nor release of land
A total of 1490 hectares of land belonging to 5,400 families remains frozen for the past five years.Parbat Portel
The government’s announcement to release land frozen under the East-West Railway—specifically along the Kakadbhitta-Inaruwa section—has yet to translate into concrete action.
Six months after the declaration in the annual budget speech in May, to release around 2,200 bigha (1490 hectares) of land belonging to 5,400 landowners has not been implemented yet. The lands, which had been placed under freeze, still await formal release.
Residents across the eastern districts of Jhapa, Morang, and Sunsari remain in limbo. As early as April 2025, a correspondent described how families who had been barred from farming, selling, or even developing their land for years now feel trapped on their own land.
“We feel like prisoners on our own land,” said one affected landowner, echoing a wider sense of despair among the community. Others told of losing bank loans or commercial opportunities because their plots remained frozen and untransferable.
According to the Department of Railways, the freeze and release of land must be authorised by the Cabinet, and the mere mention in the annual budget is not sufficient.
Kamal Kumar Sah, the spokesperson at the department, said earlier that insufficient funds made compensation impossible, and without resources, neither compensation nor release can proceed.
Meanwhile, officials from the Ministry of Physical Infrastructure and Transport have indicated they plan to begin distributing compensation in the next fiscal year. But affected residents say they have already waited long enough. “Children simply don’t have secure shelter; we cannot sell, or mortgage, or invest — our lives have been on hold,” said a local from Jhapa.
The railway was once hailed as a national pride project under then prime minister KP Sharma Oli, with land acquisition notifications issued in 2020. However, that ambition has stalled—and thousands of ordinary land-owners are the ones still waiting.
Critics warn that without swift resolution, the freeze may have caused irreparable harm to livelihoods, businesses and trust in long-term infrastructure planning.
Because there has been no decision, the affected people have been repeatedly visiting the Department of Railways and the project office. Ranjit Prasain, secretary of the committee of the railway-affected people, said the matter remains stuck on paper.
“So far, we have received neither compensation nor the release of our land. Now we are also seeking legal remedies from the government to claim compensation,” he said.




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