Implementation agreement with Himagiri Hydro Energy, which was earlier awarded the project, lapsed on Sept 7, PTC India Financial Services has wanted to revive bids for the 300 MW Panan Hydropower Project as Himagiri Hydro Energy, that was awarded the project, has not been able to succeed monetary closure.
Financial closure is achieved when all agreements with banks and monetary institutions for funds are made and all the conditions precedent to the initial drawing of debt are satisfied.
Hyderabad-based Himagiri Hydro Energy was awarded the $383-million Panan project in 2005. The implementation agreement with the Sikkim state government lapsed on Sep seven, in line with sources.
An e-mail sent to PTC India monetary didn't elicit a response. The Sikkim Government is to infuse 26 percent equity within the venture project, which proposes to construct a dam across the Rangyongchu stream, at the foot of Lingzya village in North Sikkim.
The last date for bid submission for the project is October 9.
Market watchers say financial closure couldn't be achieved on account of the robust opposition from the locals in Dzongu, wherever the project is slated to come up. Within the past, considerations are raised on the impact the project would have on the culture, human ecology and social material of the native Lepcha folks. It might have an effect on the delicate ecology of the region, according to industry watchers.
The project developers had not obtained clearances from the National Board of Wildlife for the project, which would be situated among ten klicks of the Kinchinjunga Park and also the part Reserve. Locals had additionally alleged that Himagiri had no previous expertise in building hydropower projects.
The Sikkim government holds a 26 % stake within the project and is anticipated to receive royalty within the variety of power at twelve percent for the primary fifteen years. The royalty can increase to fifteen percent from the sixteenth to the thirty-fifth year, after that the project is scheduled to return below full possession of the state.
The Panan hydro project is one amongst a group of the three stalled hydro projects in Sikkim. The opposite two projects are the 500MW Teesta VI project being engineered by Lanco Teesta Hydro Power and also the 120 MW Rangit IV project, that was awarded to Jal Power Corporation in 2004.
In 2016, the Power Ministry was about to hold discussions with the Sikkim state government to revive the projects.