The Urja hawa methai

DAWA LEPCHA

In the section ‘Revenue From Sale Equity Energy Component’ in the White Paper commissioned by the state government on hydro electric projects in Sikkim, it is clearly mentioned that:  “The state government is to have 26% equity share in all the independent power projects that are being implemented in the state”. The capital amount for this equity is to be arranged as loans by the companies, which will be paid back at approximate interest rate of 15%. The bleak prospect of this arrangement is mentioned that, even if there is a 25% return of the equity, the state will be left with very meager amount until the time the loan for the equity share is paid off. Which means we are not sure when we will be getting the full revenue benefits that is being touted so much, from these hydro power projects.
It is also mentioned that, the state being a minority stake holder in all these projects (IPPs) it will have very little say in the decision making. Is this what is exactly happening in the case of Teesta Urja 1,200 MW power project. As per a national daily, the company sold 50.9% of its stake to a company from Singapore without the knowledge of the state government! It is also alleged that the company has denied the government the 26% equity share, a pre- condition in the MoU! Why is this condition being blatantly violated? What is happening? Will the other companies follow suit? Has the state government put in the equity amount? These are just the tip of iceberg. We don’t know how much is hidden underneath.
Teesta Urja is certainly in a bad shape post September 2011 earthquake and the Jagan Mohan Reddy episode, so it naturally is trying to wriggle out of the quagmire and the state. One of its ex-engineers, who is engaged with some other project now in north Sikkim pointed out that work progress was only about 20%. At this rate he was not sure when the project will be completed.
All said and done, at the end of the day, if we are not careful, it is us the common man who will have to face the music in future and bear the burden.