The cost of Teesta hydro power project stage III has gone up by almost 1/3rd from Rs 8,581 crore to Rs 11,382 crore. The slow progress in the lining of the two pressure shafts has resulted in the postponement of commissioning date of 6X200 MW project from December 2013 to June 2015. In addition, this has also added to interest burden during construction. Earlier too the project had faced time overruns on account of geological surprises and natural calamities and cost overruns on account of damages and change in design aspects. However, with the completion of 100% excavation works, the geological risks are contained to the minimum.
Teesta HEP is being executed by Teesta Urja Limited (TUL), a Special Purpose Vehicle incorporated for the purpose. The company is promoted by a consortium comprising Asian Genco Pte Limited, Government of Sikkim (GoS), Athena Projects Private Limited (APPL), PTC India Limited (PTC) and having percentage equity holding shares of 50.1%, 26%, 12.9%, and 11%, respectively. The company has signed a PPA with Power Trading Corporation (PTC) for sale of power wherein PTC will sell 70% of the total generation on long term basis and rest 30% on merchant basis.