Teesta III hydropower project to go on stream in early 2015.

Delayed by over two years due to natural calamities, the 1200 MW Teesta III hydropower project in Sikkim is scheduled to commence commercial production in the first quarter of 2015.

With over 100% of cost overrun, the project has so far seen investment of Rs. 7000 crore from public institutions and over Rs 1200 crore in the form of foreign direct investment (FDI) from major private equity players including Morgan Stanley, Everstone Capital, General Atlantic, Goldman Sachs Investment Management, Ashmore Group and Norwest Venture Partners. Teesta III is considered to be one of the largest FDI flows into the country's power sector

Commencement of Teesta - lll is expected to make the tiny Himalayan State not only self-sufficient in electricity, but a net power exporter. About 12 - 15% of Teesta-III power will be available free of cost to the state of Sikkim. About 70% of the rest will be transmitted to power-starved states like Delhi, Uttar Pradesh, Haryana and Rajasthan, while balance 30% will be sold on spot basis, providing significant relief in peak summer months of the northern India. Sikkim's peak hour demand is 114 MW which can go up to 144 MW in a couple of years.

A senior company official said that over 90% of the project work is already over. The project is executed by Teesta Urja Ltd (TUL) with 26% equity from the Sikkim State Government. 'Some cosmetic project work and procedural clearances are required which we are confident of getting cleared soon. All disputes have been settled. We will be able to commence the project early next year,' said the official.

BS