Cabinet subcommittee formed to take final call on govt involvement in Teesta Urja for Stage III

The State Government has constituted a Cabinet Sub-Committee to examine all issues related to the Sikkim Government taking a major equity stake in Teesta Urja Hydro Power which is developing the 1,200 MW Teesta Stage III hydel project in North Sikkim.  The Cabinet Sub-Committee is headed by Power Minister DD Bhutia, and includes GM Gurung, Minister for Roads & Bridges; RB Subba, Minister for Human Resource Development; and PB Subba, Principal Chief Engineer-cum-Secretary, Energy & Power Department as Member Secretary. The subcommittee, as mentioned, will examine issues in connection with raising the equity stake of the Government of Sikkim through the Sikkim Power Investment Corporation Limited (SPICL) to 51% in Teesta Urja Limited (TUL) in relation to Teesta Stage III.

REC to give additional Rs 995 cr loan for Teesta III hydel project

GANGTOK, 13 Aug: With the Teesta Stage III hydroelectric power project at Chungthang being developed by Teesta Urja now facing uncertain delays and suspension in construction activities over a variety of reasons, the cost of the project is informed to have escalated to more than Rs. 8,500 crore. Not only has the cost escalated, but seeing the progress of works at the project site especially after being hit with the earthquake of 18 September during which a number of workers lost their lives, it is unlikely that the project will be commissioned next year as scheduled.
However, now it is informed that the project will be infused with fresh funds by Rural Electrification Corporation of India. The REC, it is learnt, will extend an additional loan of Rs 995 crore to the 1,200-MW Teesta III project. This will take the REC’s total lending to the project to Rs 3,095 crore.
REC is a leading public infrastructure finance company in the power sector under the Ministry of Power; it promotes and finances rural electrification projects across India. The company provides loans to central and state sector power utilities, state electricity boards, rural electric cooperatives, NGOs and private power developers.
Teesta III project has seen substantial cost overruns due to delays on account of natural calamities as well as legal hurdles. With the roadway connecting to North Sikkim often blocked by landslides, construction activity has been affected. A major factor in the suspension of activity at the project site has been the disallowance in the traffic of heavy vehicles along the north Sikkim roads since the collapse of the Rangchang bridge. However project officials still maintain that the project will be complete by December next year with 70% of the works completed.
It is informed that the cost overrun is about Rs 2,700 crore. The additional term loan of Rs 995 crore will include Rs 851 crore senior debt as well. Initially REC was to lend Rs 2,100 crore for the project. The fresh amount has been sanctioned since the project cost has jumped to Rs 8,581 crore from Rs 5,700 crore which was the initial estimate. It is informed that REC communicated to project developer Teesta Urja about its decision to sanction the additional loan sometime last week.
Only a few weeks ago, the State government had infused its part share of equity into the project amounting to about Rs. 162 crore out of a total of Rs. 292 crore which allows it 15% stake in the project. The state government is awaiting further sanction of funds by the Power Finance Corporation to infuse its full share of 26% equity in to the project. Singapore-based Asian Genco Pte holds 50.1 per cent stake in Teesta III project.

State govt finally gets 15 % equity in Teesta Stage III; en route to get complete 26% equity as per MoU

TEESTA URJA AGREES TO 3 STATE GOVT OFFICIALS AS BOARD MEMBERS
GANGTOK, 26 July: The Energy and Power Department and Teesta Urja, the joint venture partner developing the 1200 MW Teesta Stage III at Chungthang, North Sikkim, are on course to settle their dispute and in the process, the state government has finally got its equity in the near Rs.6000 crore project. Not only has the Board of Directors of Teesta Urja agreed to the infusion of the state’s share of 26% equity into the project, which has been a matter of dispute for a long time now and also pending in two separate forums, but in a meeting held on 19 July, the Board also allowed for three state nominated officials to be part of the board with one of the nominated officials to be the Chairman of the board, as per the conditions laid down by the state government. 
The dispute between Teesta Urja and the state government has been on for some years now particularly over the infusion of the state’s share of 26% equity into the project as per the memorandum of understanding. The state government, till now, had not infused any equity into the project to lay claim on its share of equity. However, and as officials confirm, the state has now attained over 15% equity into the project and would soon acquire the remaining 11% of the total 26% equity. It has been informed that the Power Finance Corporation of India has sanctioned Rs.162 crores as the state’s equity into the Teesta Stage III project; this is out of the total amount of Rs.296 crores which the state government has to infuse in the project. The sanctioning authority being the Power Finance Corporation and the amount sanctioned as yet being Rs.162 crores, the state has now acquired over 15 % equity; the remaining amount is to be sanctioned soon, it is informed.
With the infusion of Rs.162 crores being made by the state government the Athena Projects Private Ltd (APPL), which has floated Teesta Urja, has approved the transfer of over 29 crore partly paid shares of the project to the government. In other words the state has paid share subscription of Rs.162 crores out of Rs.296 crores, this amount is equal to just over 15% equity of the total 26% equity due to the state.  In fact these shares have been approved for transfer to the Sikkim Power Investment Corporation Limited which is the vehicle floated by the government for equity infusion in the mega hydel projects in the state. This, as informed, is without prejudice to all the cases underway concerning the disputes between Teesta Urja and the Power Department.
Besides this the Board of Directors of Teesta Urja on 19 July agreed to one of the principal conditions of the state government, that of inducting 3 officials of the government in the Board with one of them to be Chairman of the Board. Two officials, namely the Power Secretary and Finance Secretary have already been nominated as state representatives in the Board and the third official is yet to be nominated. The state official who will be chairman of the Board will remain so till commercial operation of the project, it was decided at the meeting.

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.

Chungthang unhappy with delay in rim treatment at Teesta Stage-III

CHUNGTHANG, 29 May: Residents of different wards under Chungthang GPU expressed their dissatisfaction with the Teesta Urja Company, which is developing the 1,200 MW Teesta Stage III project at Chungthang in North Sikkim, for non execution of rim treatment in the area. The public of Chungthang raised the issue at the Gram Sabha convened here on 28 May.
It may be informed here that rim treatment seeks to mitigate the geo-environmental hazards in a project area.
Samdup Lepcha from Pegong ward claimed that tremors rippled by blasting undertaken for project construction had resulted in maximum damages in his area. Highlighting that the company has not fulfilled its commitments under its Rehabilitation & Resettlement policy, he informed that proper rim treatment is required below Pegong village where the project is under construction.
The locals also contended that the company is issuing contract works at old rates [of 2006 vintage] and local contractors are incurring losses due to this. This, they further stated, had been intimated to the company officials but they have remained willing to make any changes.
The public further mentioned that the company has not provided details with regard to the duration of the scholarship awarded to students.
The footpath and land in the Chorten ward has also been extensively damaged due to project construction works, it was informed. The people of the affected areas have demanded that the project developer fulfill its commitments towards the public.

Public aggrieved with Teesta Urja’s disinterest in settling compensation due for land damaged by tower installations

MANGAN, 13 April: Affected landowners of the 1,200MW Teesta Stage III being developed in North Sikkim are aggrieved with their demand of compensation for property damaged by the project developer, Teesta Urja, remains unaddressed. The complainants are those whose land was acquired for erection of towers to carry high tension power transmission lines. They are upset that their land, approach roads and footpaths were damaged in the tower installation process, but now compensation entertained thus far.
Landowners from the villages of Pathuk, Chandey, Kokaley, Ralap, singbel, Tibuk and Lower Mangshilla, contend that they could not sow seasonal crops on the plots of land near the tower sites since it was under construction. They rue that now that some towers have been completed, they find the surrounding fields left in extensively damaged condition.
“Our cardamom and other plantations have been damaged by the muck taken out from the foundation and even the road and CC footpath have been badly damaged while transporting the machines and other materials,” informed some landowners while speaking to NOW!
“Now we have heard that the Teesta Urja had commissioned the work to some other company,” informed another landowner, underlining that they do not know whom to approach for du compensation.
“The company had assured that we would be paid for damage to our land before they started the installation of tower and that we would also be paid rent. We have been paid only for the land measuring 30X30 feet where the towers have been installed. We were not aware at that time that our agricultural land surrounding the construction sites would be damaged like this,” they add.
“For the last six months no representative from the company has visited the area and the monsoon could prove dangerous for the houses situated below the towers. We will not allow further work to be carried out unless we are paid the damage compensation for our land,” said Kewal Das Chettri of Takjer basti under Pathuk ward.
Similarly, Purna Bahadur Chettri, another landowner, informed that he had earlier approached the company officials regarding the matter but was told that another company would be paying the compensation.
“The irrigation channel in my land, along with other tracts, has been damaged by the movement of excavators,” claims Jit Bahadur Rai.
The landowners have demanded that the representatives of the company should meet the landowners and solve the problem as soon as possible.

Govt accepts White Paper recommendation, takes in ATPIL as strategic partner for SPDC

MEGA PROJECTS PLACED UNDER POWER DEPTT WATCH, SPDC TO DEVELOP MINI HYDEL PROJECTS
GANGTOK, 08 April: The State government has entered into a strategic joint-venture with ATPIL to run the Sikkim Power Development Corporation [SPDC]. The SPDC is now being operated by ATPIL, the company which has also floated Teesta Urja which is developing the 1,200 MW Teesta Stage-III hydroelectric project at Chungthang, North Sikkim. The State government continues to hold majority equity in the Corporation as it has offloaded 49% equity to ATPIL which was selected from among the best performing private hydel developers in the State, it is informed.
This decision was taken by the State government in light of the poor performance of the SPDC over the past years [among other factors] and in order to infuse some professionalism and expertise into the corporation. For the selection of the strategic joint venture partner, tenders were floated on the basis of which ATPIL was selected to take 49% of the stake in SPDC, it is further learnt.
The managing director, SPDC, in charge of the affairs of the SPDC is from ATPIL and the day to day operations are under ATPIL now. However, in a major policy shift, all major power development projects which were so long under the SPDC have been transferred to the Power Department. The SPDC is now in charge of developing only mini HEPs in the State. A few of these are already under development and all are under 5 MW capacity. Incidentally, the White Paper issued by the State government a few years ago on hydel power development in the State is also informed to have recommended the forging of a strategic joint venture with a private developer for SPDC.
It has been candidly stated that the SPDC, under the Power Department since its establishment in the year 1998, could not function properly due to various shortcomings. Earlier, the corporation was undertaking the big power projects in the State many of which it could not implement in time. Due to this, some agreements entered into with some companies had to be cancelled, including one with ATPIL.
The SPDC itself was established for the development of hydel projects by availing loans from financial institutions, however, several projects could not be completed due to constraints which included organizational capacity limitations, funds and expertise. So, when it could not operate to the expectations of the government and started incurring losses, it was decided to offload 49% equity to a private developer.
Today, as mentioned, the SPDC is engaged in the development of a few mini HEPs in the state while all the big HEPs have been transferred to the Power Department. The strategic joint venture with ATPIL was entered into with by the state government last year.
The government has also made it clear that the SPDC shall have no rights under any Implementation Agreement with any private Independent Power Producer (IPP) entered for development of hydro power projects in the State by such private IPPs and all land acquired by SPDC will now be under the State government.

BBF aids infrastructure development at Singhik

MANGAN, 27 Jan: Among the infrastructural developments taken up by Bhavishya Bharat Foundation (BBF) with the support of hydel developer Teesta Urja Ltd, a Gumpa kitchen was constructed at Singhik.
This kitchen was handed over to the Singhik Gumpa Management Committee on 24 January, inaugurated by Panchayat President, Singhik-Kazor GPU, Achung Lepcha. The Panchayat President in his address thanked Bhavishya Bharat Foundation for supporting infrastructure development, livelihood, education and health care.
State Coordinator (BBF), Nawraj Gurung in his address, detailed the activities undertaken by BBF in the project villages. He requested for the community’s participation in the “Amoa Atil” (Mother’s Enterprise) program being initiated by the BBF in the project villages.
He also stressed that developmental intervention by external development agencies does produce sustainable impact provided the local community comes forward and participates in the development process.
Panchayat President, Panchayat Secretary, Panchayat Member of Kazor and Singhik, Gumpa Committee, Teesta Urja Ltd representative, BBF official and villagers were present at the inaugural function.

One killed of electrocution in Chungthang

GANGTOK, 25 Jan: One person working at the Teesta Urja construction site at Chungthang is reported to have died of electrocution. According to reports, Hasta Bahadur Rai, working as a field assistant with Abir Infrastructure at Chungthang died of electrocution at the work site. He was a 32 year old resident of Bom Basti, Kalimpong.
He was found by his colleagues in the room above their mess lying on the floor with his face on the heater and his body on fire. This was at around 1:30 pm on 24 January. As soon he was found in this condition, his colleagues immediately disconnected the power but Hasta Bahadur Rai had already succumbed. He was immediately rushed to the Mangan hospital where he was pronounced dead.

48-wheeler was within prescribed load limit, Teesta Urja claims

GANGTOK, 21 Dec: While most people have been pointing fingers at Teesta Urja, the company engaged in the development of the 1,200 MW Teesta Stage-III hydel project at Chungthang, for the Rangchang bridge collapse, which claimed eight lives, including 2 of its own employees, company officials have denied any liability for the accident.

Affected Chungthang residents demand compensation from Teesta Urja for loss of life and property to the Earthquake

GANGTOK, 01 Nov: Now that much of the confusion, uncertainty and apprehension surrounding the earthquake, its damages and subsequent assessment have settled down and with things appearing to be returning to their normal course the focus of the people who faced the brunt and brute force of the 18 September earthquake, particularly in Chungthang, has turned towards its possible causes and their earlier ire against the 1200 MW Teesta Urja Hydel project being developed at Chungthang.

Teesta Urja sponsors science lab for school and meditation cabins for monastery at Chungthang

MANGAN, 10 April: The Bhavishya Bharat Foundation of Teesta Urja Ltd handed over 10 meditation cabins [for monks] and a Science Laboratory to Tasha Tangay Secondary School at Chungthang in North Sikkim. The inauguration programme had the North Zilla Adhakshya Khamsoom Lepcha, as chief guest and was also attended by the Chungthang SDM, Tashi Chopel, SDPO, Medical Officer,  CDPO, Panchayat President and Panchayat members of Chungthang ward, Headmaster and staff of the school, General Manager Dam Site (TUL), Manager from SEW & NEC. The Chief Guest inaugurated and handed over the official papers to the School Managing Committee, Headmaster and the Gumpa Committee. The chief guest and the Gumpa Committee thanked the BBF for constructing the two facilities.

Teesta Urja agrees to abide by Transport Minister’s instructions on use of local truckers

GANGTOK, 04 March: A tripartite meeting, convened yesterday between the Sikkim Truck Drivers Association, the Truck Driver Owners’ Association and the hydel developer Teesta Urja [which is working of Teesta Stage III] under the chairmanship of the Chungthang panchayat president, Chedup Lepcha, discussed the month old instructions of the Transport Minister, TT Bhutia, who also happens to be the president of the All Sikkim Drivers’ Front. As per the “instructions”, all hydel project-related carriage works in Sikkim should appoint local truck drivers and hire local trucks.