Gangtok: Following the cabinet decision of the Sikkim government on February 3 to disinvest from 60.08 percent share in the Teesta Urja Stage 3 dam project, the Sikkim Democratic Front (SDF) party has filed a public interest litigation against the Sikkim Krantikari Morcha (SKM) government for the disinvestment of the Teesta Stage 3 dam.

SDF spokesperson MK Subba, on behalf of SDF, has filed a PIL in the Sikkim High Court to scrap the cabinet decision on disinvestment, stating, “the disinvestment process was not conducted correctly.” Speaking at a press conference held at the SDF party office in Gangtok on Friday, Subba stated, “The State government did not adhere to Sikkim’s finance rules, general disinvestment policy, or the implementation agreement between the Sikkim government and Teesta Urja dated July 18, 2005. The disinvestment goes against the shareholders’ agreement and the Sikkim Hydroelectricity policy.”

The Sikkim High Court has admitted the case, and the entire matter is sub judice. The State government has been given 6 weeks to respond, after which the SDF will have 3 weeks to respond to the government’s claims.

Subba claimed that the State government executed the disinvestment without assessing the damage incurred. He questioned, “How can the CM provide his own figures? Until the project becomes revenue-generating, there is a moratorium of 2 years on the interest and principal amount as the Teesta Stage 3 dam was constructed on a loan. Despite this, they are proceeding with disinvestment.”

SDF criticised the state government for disregarding suggestions from the central government against disinvestment. Subba stated, “On December 26, 2023, the state and central government met in Delhi. The central government advised the Sikkim government to first claim insurance for the Teesta Stage 3 dam along with the proprietor of Teesta Urja Limited. Instead of heeding this advice, the state government is attempting to dispose of the entire project.”

Highlighting the condition of the devastated Teesta Stage 3 dam in Chungthang, Mangan District, Subba emphasised, “The dam accounts for only 14-15 percent of the total project cost estimated at around Rs. 13,965 Crores. Only the dam has been damaged, while the internal tunnels, turbines, machines, siltation chamber, and powerhouse remain intact. There is only debris to be cleared. Why dispose of a project that is only 14 percent defunct? The government is using disposing of a revenue-generating asset in the State as a pretext.”

The SDF has also filed a public interest litigation in the Supreme Court of India regarding the destruction of the Teesta basin from Lhonak Lake to West Bengal. Subba questioned, “Who is responsible? Who was supposed to oversee the dams? What were the essential monitoring mechanisms? And what ultimately led to the devastation? Instead of restoring the damages, the state government is considering disposing of the entire project.”

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