Developers of 3 scrapped hydel projects move High Court to challenge Govt decision

GANGTOK, 20 Aug: The State government has some additional hydel problems coming up with three companies approaching the High Court of Sikkim challenging the government’s decision to scrap projects awarded to them. Lachen Hydro Project Ltd, Chungthang Hydro Project Ltd and Teesta Hydro Projects Ltd have filed separate writ petitions in the High Court challenging the decision of the State government to terminate their agreements for development of hydel projects in the state. This is related to the decision of the government to terminate the Bop, Bhimkyong and Lachung hydroelectric projects.
All three companies were engaged in the development of hydro-power projects in North Sikkim on the Lachung axis and claim to have already invested huge sums of money into their respective projects.
Lachung Hydropower Private Ltd was engaged in the development of the 99 MW Lachung HEP on the Lachung Chu; Teesta Hydropower was engaged in the development of the 99MW Bhimkyong HEP also on the Lachung Chu at Bhimkyong village, and Chungthang Hydropower was engaged in the development of 99 MW Bop HEP also on the Lachung Chu in Bop village.
The Lachungchu is  a tributary of the Teesta and these projects are located upstream of the 1,200 MW Teesta Stage III being developed by Teesta Urja at Chungthang. Incidentally all three companies developing three different hydro projects appear to have been floated by the same parent company as they have the same Manager (Business Development) in Carl Sabbarwal. The petitions have however been filed separately.
The petitions challenge the order of the State government issued on 21 June, 2012 which announces that the government has decided to terminate the agreement for developing of the respective hydro power projects. It has been submitted that the companies have invested over Rs. 10 crore already in various works associated with the projects. The Letter of Intent in relation to the projects was issued by the government in the year 2006.
The court, for now, has directed that the state respondents are not to create any third party interest in respect to the projects related works which have been terminated and further has directed the state through the DGP to ensure that the property of the petitioner in the area are adequately protected.
Earlier, while terminating these projects, state government officials had proffered a host of factors behind the decision to scrap the projects. These included disinterest of the affected people and the post-18 September Earthquake apprehensions along with the potential environmental impact. While the letter of termination was issued on 21 June the Cabinet decision on this had been taken earlier.
In fact 4 projects had been scrapped, the fourth being the 280MW Teesta Stage I which was being developed by Himalayan Green Energy Private Ltd on the Teesta near Thangu on the Lachen axis upstream of Teesta at Chungthang.
In fact, and as reported earlier, the projects had been consistently opposed by the people of Lachen and Lachung who had  not allowed the project survey and investigation to be undertaken in the area as a result of which even the Detailed Project Reports for these had not been prepared, officials had informed.
The State Government had signed Memorandum of Understanding (MoUs) for the Teesta Stage-I with Polyplex Corporation India Private Limited back in the year 2005 and with Himalayan Green Energy Pvt. Ltd [which is also co-developer of Polyplex Corporation India Pvt Ltd] for the remaining three HEPs in 2008.