Thursday, August 7, 2008

POWERGRID forms JV to evacuate 1200MW power from Sikkim

Power Grid Corporation of India Ltd. (POWERGRID) has entered into a Shareholder’s Agreement with Teesta Urja Ltd to form a Joint Venture Company named “Teestavalley Power Transmission Limited”. The Company will develop associated transmission system for evacuation of power from 1200 MW Teesta-III Hydro Electric Project (HEP) being developed in Sikkim by Teesta Urja Ltd. The project, to be built at an estimated cost of Rs. 708 crore, comprises of construction of (i) 400 kV D/C Teesta – Mangan Transmission line (Approx. length 10 kms) and (ii) 400 kV D/C Mangan-Kishanganj Transmission Line (Approx. length 180 kms). The project is scheduled for completion by September, 2011. POWERGRID and Teesta Urja will have 26% and 74% stake respectively in the Joint Venture Company. 

The agreement was signed by Shri V.M. Kaul, Executive Director (PI & BDD) on behalf of POWERGRID and by Shri Y.N. Apparao, Managing Director on behalf of Teesta Urja Ltd. in the presence of Shri S. K. Chaturvedi, CMD, POWERGRID and other senior officers of POWERGRID, Teesta Urja Ltd. and Teestavalley Power Transmission Ltd. The JV Board will be chaired by CMD, POWERGRID. 

The project would be built up on Build, Own & Operate (BOO) basis and will also provide transmission capacity upto Kishanganj S/S of POWERGRID to various private HEPs being developed in North Sikkim. The project would be built on 70:30 Debt Equity Ratio. This Project will be an important part of the common transmission system for evacuation of more than 3000 MW generation from large number of upcoming HEPs in Sikkim to supply the power to the beneficiaries of Northern and Western regions.

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