Teesta III Hydro Electric Project

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The Teesta III Hydro Electric Project was a 1200 MW (6 units of 200 MW each) project located in North Sikkim. The project was being developed by Teesta Urja Limited (TUL). TUL signed a concession agreement with the Government of Sikkim (GoS) in July 2005 for implementation of the project on a Build-Own-Operate-Transfer (BOOT) basis for a period of 35 years. Teesta Urja Limited (TUL) was a formed by a consortium of companies led by Asian Genco (50.1%) and integrated by PTC India Limited (11%), Athena Projects Pvt.(13%), and Government of Sikkim (26%). Asian Genco was a Singapore based developer. The shareholding pattern of these members was not known at the time of collection of information. At the time of signing of the concession agreement, TUL held 74% stake in the project and Government of Sikkim (GoS) held the remaining 26% stake. In April 2008, Power Trading Corporation (PTC) India Limited acquired 11% stake in the project, thereby reducing the stake of TUL to 63%. The equity participation of GoS did not involve any actual upfront payment by the Government. Instead, the payment of upfront equity was to be adjusted against the proceeds from sale of free power from the project to the GoS. . The project was required to provide royalty to the GoS in the form of free power to the extent of 12% of the energy generated from the project for the first 12 years, 18% of the energy generated for 12-30 years and 30% of the energy generated for beyond 30 years.TUL has signed a PPA with PTC India Limited, a power trading company for the saleable power generated from this project. The project was awarded by the Government of Sikkim by way of competitive bidding on the basis of the highest upfront premium paid to the Government of Sikkim. The project was expected to cost US $ 1426.38 million and achieved financial closure in September 2007. A consortium of banks with Rural Electrification Corporation in the lead had provided the debt for the project. The project was expected to achieve commercial operation in the Eleventh Five year Plan (2007-2012).