Teesta III project likely to be ready by December 2013

The 1,200 MW Teesta-III hydro project in Sikkim which was delayed by natural calamities and legal hurdles is likely to be commissioned by December, 2013. The project would supply power to Rajasthan, Sikkim and Haryana and is being developed by Teesta Urja.

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

PTC India Chairman and Managing Director Tantra Narayan Thakur told the reporters that the construction activity of Teesta- III project got affected due to the September 2011 earthquake. The project is expected now to be commissioned in December 2013.

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.

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

A Teesta Urja official revealed that the delays have escalated the project costs, which is estimated to be around Rs.8000 crore. Initially the project cost was estimated at about Rs.5700 crore.

Sources said that earlier this month, issues regarding the transfer of 26% stake to Sikkim Government  were resolved.

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

According to the minutes of the meeting, Sikkim Government officials assured support on all project related issues including the mixture 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 the Teesta Urja Ltd on Build Own Operate Transfer (BOOT) basis for a period for 35 years.

News reported by AR for News Vision online news blog