Mumbai-based Patel Engineering, in a stock exchange filing, said that it has clinched a major order for the Teesta-IV hydropower project in Sikkim.
The order, valued at Rs.1,251 crore, relates to the 500-mw Teesta-VI hydropower project owned by Lanco Teesta Hydro Power Ltd (LTHPL), a wholly-owned subsidiary of NHPC Ltd.
Referred to as the “Lot II Civil Work” contract, the mandate includes balance civil works of the underground power house and transformer cavern, part of the two head race tunnels, surge shafts, pressure shafts and adits, tail race tunnel and other associated structures.
The project site is located near village Subin Khore, South Sikkim, about 67 km from the nearest major town – Siliguri in West Bengal.
A run-of-river scheme on River Teesta, the project was earlier proposed to be developed by the Lanco Group. However, due to financial constraints faced by the Lanco Group, the project turned abortive.
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National Company Law Tribunal (NCLT) initiated the Corporate Insolvency Resolution Process (CIRP) in March 2018. In the subsequent bidding process, NHPC emerged as highest bidder, took over LTHPL and converted it into the company’s wholly-owned subsidiary in October 2019. NHPC submitted the investment proposal of Rs.5748.04 crore (price level of July 2018) that included the acquisition cost of Rs.907 crore, cost of balance works of Rs.3863.95 crore. The remaining Rs.977.09 crore represented interest during construction (IDC) and other financial charges. CCEA approved the investment plan on March 8, 2019, with completion envisaged within 60 months of the said date.
Accordingly, the Teesta-VI hydropower project is scheduled to complete by March 2024.
