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Govt nod to NHPC acquiring Lanco's Teesta hydro project for Rs 907 cr

Press Trust of India  |  New Delhi 

The government Thursday approved a proposal for state-run hydropower giant NHPC to take over debt-laden Lanco's 500 MW Teesta hydro-electric power project for Rs 907 crore in

The (CCEA) at its meeting chaired by gave its approval for the investment sanction for acquisition of Teesta Hydro Power Ltd (LTHPL) and execution of balance work of the Teesta Stage-Vl Hydro Electric Project by the in Sikkim, an official statement said.

The project will be implemented at an estimated cost of Rs 5,748.04 crore (at July 2018 price level), which includes a bid amount of Rs 907 crore for acquisition of the LTHPL and estimated cost of balance work of Rs 3,863.95 crore, which includes Interest During Construction (IDC) and Foreign Component (FC) of Rs 977.09 crore, it said.

By taking up this project, this sink cost will be utilised and this investment till now will also be used for generation of energy, the statement said adding that the bid amount will be used to discharge the liability of banks and financial institutions, etc.

The project shall help in meeting peaking demand of energy, balancing and ramping requirement of the grid, and shall accelerate process of development of Sikkim, it said.

Teesta Stage-Vl is a Run of River (RoR) Scheme in Sirwani Village of to utilize the power potential of Basin in cascade manner.

The project also consists of construction of a 26.5 metre high barrage across

The project would generate 2,400 million units of in a 90 per cent dependable year with an installed capacity of 500 MW (4x125MW).

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, March 07 2019. 15:25 IST