Power Deptt Vs Teesta Urja dispute may yet find an out of court settlement

GANGTOK, 26 July: Disputes between the state government and Teesta Urja which is developing the 1200 MW Teesta Stage III at Chungthang, North Sikkim are being heard in two forums which include the State Electricity Regulatory Commission and also at the District Court, East at Gangtok. Teesta Urja on April 25, obtained a stay on the order of State Electricity Regulatory Commission appointing a sole arbitrator upon an application filed by the government of Sikkim. The state government had approached the State Electricity Regulatory Commission on April 5 alleging that Teesta Urja has denied the government it's 26 percent equity shares in the Rs. 6000 crore mega power project, a pre-condition in the Memorandum of Understanding signed by the company with the government. Teesta Urja Limited filed an appeal before the Appellate Tribunal for Electricity against the order of the State Regulatory Commission, referring the matter to a sole arbitrator. The matter is fixed for final hearing and disposal before the Commission. 
On the other hand the state government had also approached the District Judge East and North District at Gangtok praying for interim injunction restraining Teesta Urja from changing the constitution of its board of directors. The District Judge through an Order dated April 7, passed an interim order restraining the company from re-constituting its board of directors. The government of Sikkim apart from staking claim of 26 percent equity shares has also raised a claim with respect to its right to appoint two directors. However it now seems that the two entities, Sikkim government and Teesta Urja may yet find an out of court settlement as indicated with the infusion of state’s equity and the approval by Teesta Urja to induct 3 state government officials as members of the Board of Directors.