Teesta III proj likely to be ready by Dec 2013

Teesta III proj likely to be ready by Dec 2013

PTI

New Delhi, July 19, 2012

The 1,200 MW Teesta-III hydro project in Sikkim, delayed by natural calamities and legal hurdles, is likely to be commissioned by December 2013. The project, which would supply power Sikkim, Haryana and Rajasthan, among others, is being developed by Teesta Urja, where four entities, including Sikkim government have stakes.

Power trading solutions provider PTC India, which holds 11% stake, said the project is expected to be ready by the end of next year.

"The construction activity of Teesta III project got affected due to the earthquake of September 2011. The project is now expected to be commissioned in December 2013," PTC India chairman and managing director Tantra Narayan Thakur told PTI.

Singapore-based Asian Genco Pte holds 50.1% stake in Teesta III while Sikkim government and Athena Projects Pvt Ltd has 26% and 11% shareholding, respectively.

Going by initial schedule, first unit of Teesta III was to be commissioned in August 2011, as per Teesta Urja website. The project would have six units of 200 MW each.

Sources said that more than 70% of work at Teesta III has been completed.

Apart from last year's earthquake that affected the project site, differences between Teesta Urja Ltd and Sikkim government have also delayed the implementation of Teesta III.

A Teesta Urja official said that delays have escalated the project costs, which is now estimated to be around Rs. 8,000 crore. Initially, the project expenses were projected at about Rs. 5,700 crore.

Earlier this month, issues regarding transfer of 26% stake to Sikkim government were resolved, sources said.

The Sikkim government had resorted to legal action on the issue of transfer of 26% stake in the project to itself.

On July 13, Rural Electrification Corp -- one of the lenders for the project -- had convened a meeting of Teesta Urja stakeholders. REC has proposed to take up cost over run funding to the tune of Rs. 1,000 crore.

According to the minutes of the meeting, Sikkim government officials assured support on all project-related issues including infusion of equity and issue of no objection certificate (NOC) for bridge construction.

The run of the river project was awarded by the Sikkim government to Teesta Urja Ltd on BOOT (Build Own Operate Transfer) basis for a period of 35 years.