The Hindu Business Line : Sikkim to withdraw LoIs issued to pvt hydel project developers

Gangtok, Jan. 24 The Sikkim Government has decided to withdraw letters of intent issued to private hydroelectricity developers for four proposed hydel projects in the State.

This was decided in a Cabinet meeting held here last week, chaired by the Sikkim Chief Minister, Mr Pawan Chamling, at the Tashiling State Secretariat here.

The four projects are: The 99 MW Lingza Project in Dzongu on the Tholong Chu in North Sikkim which was to be developed by the SSNR Super Power Private Ltd. The 40-MW Rateychu-Bakchuachu HEP in Kabi-Tingda, North Sikkim, to be developed by Costal Energy Private Ltd.

The 88-MW Tashiding Project in West Sikkim over the Rathong-Chu by Shiga Energy Pvt Ltd and the 90 MW Ting-Ting Project over the Rathong-chu in West Sikkim, which was scheduled to be taken up by SMEC International Private Ltd.

According to sources in the Department, the decision to withdraw the letters of intent was because of “non-performance of activities as per the agreement signed between the Government and the private parties and non-compliance of milestones as per letter of intent and because of technical flaws in the pre-feasibility reports submitted.”

While it is not yet clear whether these projects will be reviewed or not, as far as the Cabinet decision goes, the projects stand cancelled for now.

The State Cabinet also deferred its decision on whether or not to cancel the agreement drawn up with Amalgamated Transpower for the proposed hydel projects in the State.

The decision has come at a time when there have been protests against the State Government’s decision to develop hydro power projects especially in the remote Dzongu area in North Sikkim. Concerned over the slew of hydel projects planned in the State, the affected people of North Sikkim, especially those from the indigenous Lepcha community, have been on an indefinite hunger strike here from June 20, last year, spearheaded by the Affected Citizens of Teesta (ACT).

Members of ACT were not available for comment on the Government’s decision to withdraw the letters of intent.