Clauses violated, ACT wants MoU on Pannan HEP terminated

GANGTOK, 12 Aug: Detailing that specific clauses of the MoU signed between Himagiri Hydro Energy Pvt Ltd and the State Government have been violated by the project developer, the Affected Citizens of Teesta [ACT] has demanded that the MoU signed in 2005 be terminated.
An ACT press release issued by its general secretary Dawa Lepcha informs that as per ‘Article 4: Obligation of the Company, Clause 4.7’ of the MoU signed on 05 December 2005, the company was required to achieve Financial Closure within 12 months from the date of signing of the agreement. In case of delay in obtaining Environment Clearance, the MoU allowed for the financial closure “to be achieved within six months from the date of Environmental Clearance”. The company got the Environmental Clearance on 02 January, 2007.
However, on the basis of information acquired through RTI, ACT, the release informs, found out that even six and a half years since the MoU was signed and four and a half years after the Environment Clearance was acquired, the company has not achieved the Financial Closure.
As per the same Article and clause 4.9: (Equity participation) and clause 4.9.1, the State Government and the company are to execute the 26% equity subscription agreement (the public share) within six months from the signing of the MoU, the release mentions and further alleges that even after six and a half years of signing of the MOU, the equity subscription agreement has not been executed.
ACT has demanded to know why these articles and clauses have not been adhered to. ACT has also questioned the state government’s inaction against the company for such violation of the MoU.
The release further demands the termination of the MoU as per Article 5, Clause 5.1 of the MOU for the “interest of all and the environment and ecology of the state”.