- Should go on stream from June
GANGTOK: With the ending
of the long standing dispute between the Sikkim Government and Teesta Urja
Limited over the state government’s share holding in one of the largest hydel
projects, Teesta-III is all set to on stream from June this year.
Men and machines are racing against time to ensure that
project work is completed as per current schedule and provide virtually free power
to Sikkim and supply to four northern States – Delhi, UP, Haryana and Rajasthan
- which reel under chronic power shortages.
The Sikkim Government, through Sikkim Power Investment
Corporation Limited, obtained 26% share holding in the SPV that is executing
the 1200 MW Teesta-III hydro power project – the largest in the six cascade
projects on the Teesta river run, a person associated with the development
said.
Teesta Urja’s Board of Directors has already approved the
transfer of 29,64,00,000 partly paid shares held by Athena Projects Private
Limited in favour of SPICL.
The state government has, meanwhile, withdrawn its case
against TUL following the amicable settlement paving the way for taking the
project back on track.
The first unit will begin to produce power by June. As
much as 99.2% of Tunneling Works was already completed (around 34.4 Km out of
total 34.6 Km). The Excavation of 13.824 Km of Head Race Tunnel is also
complete.
REC and PTC are among the big lenders to the project
while a consortium of six PE players led by Morgan Stanley have pumped in Rs
750 crores signaling the FDI into country’s hydro power projects.
This was considered to be the largest PE transaction in
the country’s power sector. Besides Morgan Stanley, the group of investors
includes Everstone Capital, General Atlantic, Goldman Sachs Investment
Management and Norwest Venture Partners.
Experts say Sikkim sets the new trend for developing
hydel projects as the country is blessed with bounty of rivers flowing from
Himalayan glaciers during summer when the power consumption is at its peak.
Development of hydro power projects along the Himalayan river course, thus,
could be a win-win situation for the people and the governments.
Leading analyst Mr. Sudip
Bandyopadhyay, MD and CEO of Destimony Securities, said: “With potential
FDI availability, including possible World Bank support, many similar projects
can be successfully established along the Himalayan rivers.”
Mr. Nilesh H Karani, Head of Research at Magnum Equity
Broking, pointed out: “Himalayan glaciers melt in summer and the rivers supply
adequate water for hydel projects in the region. Teesta stands out as good
example of harnessing the hydro power.”
Mr Bandyopadhyay explained that “Hydro-electricity is one
of the leading sources of clean energy.
For an energy starved nation like India which has been blessed with
enough rivers, the potential of generating hydro-electricity in a cost
effective manner is significant.
“At present with only 40% of Hydel power potential being
tapped, India as a country has a huge scope of exponentially increasing hydel
power capacity and reducing pollution through this clean and green power,” he
pointed out
Power produced to be transmitted till Kishenganj through
400 KV DC line to be constructed by Teesta valley Power Transmission, a JV
between Teesta Urja Ltd and Power grid Corporation of India Limited (PGCIL).
PGCIL is to wheel the power to the beneficiary states in the northern region
beyond Kishenganj.
A World Bank report notes that severe power shortage is
one of the greatest obstacles to India’s development.
Over 40 percent of the people -- most living in the rural
areas -- do not have access to electricity and one-third of Indian businesses
cite expensive and unreliable power as one of their main business constraints,
it says.
Poor electricity supply thus stifles economic growth by
increasing the costs of doing business in India, reducing productivity, and
hampering the development of industry and commerce which are the major creators
of employment in the country, it says.
Power sector analysts say hydro power projects are zero pollutant,
as compared to thermal projects which reportedly contribute to half of global
carbon emissions and India relies on thermal power to the extent of 60% of its
consumption today. Even the cost of raw material – water – is nil.
Some may even call it Water Gold! Look at this HSBC
Global Research that says increasing hydro power generation capacity would help
in strengthening India's energy security. "Given India's tight domestic
coal supply and increasing reliance on imported coal, hydro capacity provides
the country with greater energy security,” the report says.
The government admits India’s failure to tap hydel power.
In a written reply to a question in Lok Sabha, the Minister of State for Power
Mr K.C. Venugopal said out of the identified capacity, 33320.8 MW i.e. 22.93%
has so far been developed and another 15130 MW i.e.10.41% of is under
development. He said that about 66.66% of the identified potential is yet to be
developed
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