PRESS RELEASE - I
 

DEVELOPMENT OF HYDEL PROJECTS: BENEFITS TO STATE

Sikkim has been primarily dependent on the Central assistance for funding its overall development as well as non-plan activities.  Because of the population growth as well as long term planning on the social welfare front, the fund requirement for such developmental activities is also increasing phenomenally. In order to tide up with the ever burgeoning developmental inputs more and more liquidity is required. The Central Govt. of late has been encouraging the States to develop their own internal revenue sources. So much so, that the annual state plan size is being linked with the generation of revenue of the State. Therefore, the States are willingly or otherwise giving serious thoughts over planning their developmental activities with special focus on development of revenue sources.

Sikkim neither has the geo-physical position suited to the establishment of medium or heavy industries nor the sufficient land for agriculture output.  But the nature has been very gracious enough to provide to this land locked state with abundance of hydro power potential: the only viable and potential source of revenue source and employment generation.

The state is very fortunate to have abundance of hydel potentials, which could be harnessed to build sustainable revenue source. Sikkim is estimated to have a potential of 8000MW; even a fraction of this potential meant a huge revenue source for the State.
 

 The State has identified and awarded to the IPPs the twenty six (26) hydel projects with the total installed capacity of 4747 MW. Besides Teesta Stage-V having installed capacity of 510 MW is in the advance stage of completion. The projects have been handed over to the IPPs (Independent Power Producers) on the best of terms that state shall always stands to gain in terms of  resource, employment, skill development and  technology.

            With the large number of small and mega projects in a cascade the safety of these structures is also a main consideration. Another growing concern is the environmental flow requirements of river Teesta. There is a need to maintain some minimum flow for ecological requirements and also for the flora and fauna of these river systems.

            State government is investing about 26 % in all these projects and therefore there is a need to monitor the financial health of all these power developers and in turn have to maximize the power production and also for its distribution through power producers.

             There may be social issues attached to all these projects and it is the obligation of the state government to address all these social concerns as and when required. To address these areas of concern the government has taken a decision to constitute a Project Implementation and monitoring cell which will be a technical and administrative arm of Government for smooth implementation of these projects.

 The terms of reference of this cell shall be:

1.      To study the hydropower development and operational policy of Government of India and to incorporate appropriate provisions in the state plans. It will also interact with the Government of India on policy related issues.

2.      To develop and suggest plans for independent operation and management measures for all the projects in coordination with the power developers.

3.      To study and monitor the safety aspects of all these projects with respect to dam safety guidelines of government of India.

4.      To devise the optimal operating guidelines and schedule for all the projects so as to maximize the power production without any conflict.

5.      To redress the conflicts amongst the power producers.

6.      To monitor the financial aspects associated with the project construction and subsequently the project operation.

7.      To carry out independent inspection during execution of these projects.

8.      To monitor the progress of work during execution and also to render administrative support for maintaining the time schedule for the implementation of these projects.

9.      Any other input which the government of Sikkim needs for policy planning related issues.

10.  Monitoring of R&R Plan.

        The cell will be headed by a minimum Secretary level officer of GOS with members from state and central govt. departments who will be the experts in their field.