The Union Cabinet on Thursday gave approval for the investment sanction for acquisition of M/s Lanco Teesta Hydro Power Ltd (LTHPL) and execution of balance work of the Teesta Stage-Vl HE Project by NHPC Ltd in Sikkim.
The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has taken the decision.
The project will be implemented at an estimated cost of Rs 5748.04 crore (at July, 2018 Price Level), which includes Bid amount of Rs 907 crore for acquisition of LTHPL and estimated cost of balance work of Rs 3863.95 crore with includes Interest During Construction (IDC) and Foreign Component (FC) of Rs 977.09 crore.
Teesta Stage-Vl HE Project is a Run of River (RoR) Scheme in Sirwani Village of Sikkim to utilize the power potential of Teesta River Basin in cascade manner.
It consists of construction of a 26.5 m high Barrage across river Teesta; Two Horse Shoe shape Head Race Tunnels of 9.8 m dia with 13.76 km length; an underground Power House having four units of 125 MW each.
The project would generate 2400 MUs in a 90 percent dependable year with Installed Capacity of 500 MW (4x125MW).
By taking up this project, this sink cost will be utilized and this investment till now will also be used for generation of energy.
Further, the bid amount will be used to discharge the liability of banks and financial institutions etc.
The project shall help in meeting peaking demand of energy; balancing & ramping requirement of the grid and shall accelerate process of development of Sikkim State.