Gangtok: Former Sikkim Democratic Front (SDF) spokesperson MK Subba has filed a Public Interest Litigation (PIL) challenging the Sikkim government’s decision to disinvest from the Teesta III hydropower project. The PIL, currently under hearing in the Sikkim High Court, questions the state’s move to sell 60.2% of Sikkim Urja Ltd’s stake in the project to Greenko Energies.
Subba has raised concerns over why a profitable state-owned asset was handed over to a private company without exploring alternative financial solutions. In the Sikkim Legislative Assembly last month, Chief Minister Prem Singh Golay defended the disinvestment, arguing that it was necessary to reduce the state’s debt burden. However, Subba countered that Sikkim Urja Ltd had recorded a profit of ₹1,270 crore in 2022-23 and that outstanding dues from power distribution companies could have helped stabilize finances without selling the stake.
The PIL also criticizes the absence of an open bidding process, suggesting that a competitive auction could have secured a better deal for the state. The decision has sparked political controversy, with the Bharatiya Janata Party (BJP) urging Prime Minister Narendra Modi to review the sale, while opposition parties, including the SDF and Congress, have strongly opposed it.
The Teesta III project, which suffered significant damage during the 2023 floods, is currently undergoing reconstruction with approval for a new dam design. However, environmental concerns persist, as Sikkim has 119 glacial lakes, some of which are classified as high-risk. Legal challenges related to the project’s environmental impact are still ongoing.
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