The Hindu : Karnataka Power may take stake in Sikkim hydel

Online edition of India's National Newspaper
Tuesday, Jan 20, 2004

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Business

Karnataka Power may take stake in Sikkim hydel

By Pratim Ranjan Bose

KOLKATA, JAN. 19. The Karnataka Power Corporation Ltd (KPCL) may consider picking up equity stake in the 36 MW Rolep hydel project in Sikkim to realise its long cherished dream of generating cheap power at source and wheel it into the state. KPCL is at present offering technical consultancy to the Rs. 200 crore project awarded to Amalgamated Transpower (ATPL) of Delhi.

KPCL (along with ATPL) was earlier awarded the 495 MW Teesta-IV and 360 MW Teesta stage-VI projects by the Sikkim Government through global tenders. The execution of the same, however, is running on a slow track, reportedly `due to delay in the finalisation of the memorandum of agreement (MoA)' with the State government. The company's bid to develop a thermal power station in Chhattisgarh had also run into rough weather due to the recent change in political climate of the state.

"We are keen to develop the Teesta cascade projects (IV & VI), however, even the process of investigation and preparation of detailed project report could not be initiated due to delay in finalising the agreement. We had also forwarded a draft agreement before the Sikkim Government which is yet to be approved," both ATPL and KPCL sources told The Hindu.

The sources said that both promoters along with L & T, which had recently taken interest in hydel project construction, had met the Sikkim Government including the Chief Minister, Pawan Chamling, to further express their commitment in executing the Teesta projects.

"We hope that it could be finalised really soon," KPCL-ATPL sources said adding that they would take time to complete the investigation and prepare the DPRs (detailed project reports) as new constructions had come up along the banks of Teesta at the proposed project sites since the last evaluation. "The construction activities would take at least another two years to complete".

On the proposed thermal unit in Chhattisgarh, KPCL sources said negotiations had reached an advanced stage with the former Jogi Government. "We had been there on the invitation of the state government, conducted some preliminary studies and were about to work on a detailed project report when the government was replaced". The project is now put on the back burner.

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