NHPC suffered expected loss of Rs 233.56 cr due to flash floods in Sikkim

State-run hydro power giant NHPC on Wednesday said it suffered an expected loss of Rs 233.56 crore due to flash floods in its Teesta-VI hydro power project in Sikkim.

The project was affected due to flash floods in Teesta basin on October 4, 2023.

"Teesta-VI Hydro Electric Project, Sikkim (500 MW) being executed by Lanco Teesta Hydro Power Ltd, a wholly-owned subsidiary of NHPC Ltd, which was affected due to flash flood in Teesta Basin on October 4, 2023," the company said in a regulatory filing.

The expected quantum of loss/ damage caused due to the natural calamity/ other force majeure events is Rs 233.56 crore approximately, it said.

The company further said that all assets/ works of Teesta-VI HE project are insured under the Construction All Risk (CAR) Policy, subject to excess clause and loss limit.

Insurance amount claimed and realised by the listed entity for the loss/ damage is "Nil" (as on date), it informed.

However, it said that the formal claim shall be lodged and amount for damage/ loss would be realised in due course of time, as per the CAR policy.

Talking about the details of steps taken to restore normalcy and the impact of the natural calamity/ other force majeure events on production or service, financials of the entity, it said an assessment is being done and restoration works are under progress.

It is anticipated that there will be a time delay of at least six months and consequent cost-overrun of the project.