Gangtok: During the final day of the Sikkim Legislative Assembly session, concerns were raised regarding the decision to award the Teesta Stage 3 dam project to Greenko, a private company, following its destruction during the Glacial Lake Outburst Flood on October 3.
BJP legislator and party president Dilli Ram Thapa demanded transparency from the state government, questioning why the project was sold without public consent and urging for a “white paper before code of conduct” to clarify the circumstances.
Thapa highlighted that the state government, which held a majority share in the Teesta Stage 3 project, opted to sell its share to Greenko without consulting legislators or the public. He pressed for clarity on the government’s rationale for the sale and its potential benefits.
In response to Thapa’s inquiries, Chief Minister Prem Singh Golay addressed the issue during his valedictory address. Golay explained that Greenko was the second-largest shareholder in the project after the state government, and due to certain constraints, the government opted to award the project to Greenko without open bidding.
Golay elaborated on the financial challenges faced by the state government, particularly concerning outstanding loans related to the Stage 3 dam. He stressed that failure to repay these loans would have severe repercussions, including the project being declared a ‘non-performing asset’ and the state’s share dropping to zero.
To mitigate financial risks, Golay revealed that the project was awarded to Greenko, thereby transferring all loans and liabilities to the company. He clarified that the state government would no longer bear any financial burden related to the dam.
Golay also provided insights into the new dam’s construction plans, stating that it would be a concrete dam with an estimated cost of Rs. 5-6000 Crores. He projected that the state would initially hold a 6 percent power share, increasing to 15 percent over time.
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Highlighting the financial mismanagement of the previous government, Golay emphasized the need to address the loan burden inherited by the current administration. He noted that the halt in power production following the Glacial Lake Outburst Flood had exacerbated the state’s financial challenges.
Golay concluded by assuring that reports from forensic experts regarding the dam’s destruction had been submitted to the Union Power Ministry, attributing the incident to the negligence of the previous government.
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