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Friday, January 17, 2014

Govt re-issues SPICL order to arrange state share of 26% equity in hydel projects

GANGTOK, 12 Jan: The state government has re-issued the notification constituting the Sikkim Power Investment Corporation (SPICL). This was constituted for investing the state government equity in the private hydroelectric projects.
When contacted, the Power Secretary explained that the SPICL had been put up as a vehicle to get investments into the power projects; this is because the state government cannot do this directly. These funds or investments are procured from financial institutions by the SPICL and infused in the hydel projects under Public Private Partnership (PPP) mode.
The primary responsibility of the SPICL, it is informed, is to arrange for the state share of 26% equity which it is required to infuse in all the hydel projects under PPP mode. Only last year did it manage to put in its 26% equity into the Teesta Stage III.
Apart from arranging for funds, the corporation is also to ensure that these investments give healthy returns later. In fact it is this latter aspect which is critical to the finances and revenue of the state government. As in the case of Lanco Teesta Stage VI, as informed, this equity will be put in by the state only after the project is commissioned.
The board of directors consists of the Development Commissioner as chairperson; Secretaries Finance and Power departments as Directors with the Power Secretary also to function as the Managing Director.
The Chief Engineers, (Electrical) South/West and North of the Power Department along with the Director, (Accounts), Finance, have been appointed as subscribers to the Memorandum of Association and Articles of Association of the SPICL on behalf of the government. They have been designated as such as per the Registration of Companies Act, Sikkim 1961.

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