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 Sikkim.
The Cabinet Committee on Economic Affairs (CCEA) at its meeting chaired by Prime Minister Narendra Modi gave its approval for the investment sanction for acquisition of Lanco Teesta Hydro Power Ltd (LTHPL) and execution of balance work of the Teesta Stage-Vl Hydro Electric Project by the NHPC Ltd 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.
The project also consists of construction of a 26.5 metre high barrage across river Teesta.
The project would generate 2,400 million units of electricity in a 90 per cent dependable year with an installed capacity of 500 MW (4x125MW).
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