Sikkim: Cabinet takes action following Teesta Stage-III dam breach, forms high-level committee to probe project allotment

In response to the catastrophic Teesta Stage-III Dam breach that occurred on October 4, 2023, in Chungthang, Mangan District, the Cabinet convened on October 17, 2023, and took resolute steps to address the gravity of the situation and ensure accountability. The disaster was triggered by a sudden cloud burst and flash floods, resulting in significant damage to the dam and surrounding areas.

The Cabinet's primary decision was to establish a High-Level Committee consisting of Technical Experts, Financial Experts, and other relevant Subject Experts. This committee will undertake a comprehensive examination of various aspects related to the Teesta Stage III, 1200 MW Project, to ensure the credibility, genuineness, technical know-how, and financial solvency of the Consortium. 

Accordingly, as per the decision taken , the committee will closely examine the allotment process of the Teesta Stage III Project, considering the credibility and technical capabilities of the Consortium.
Any changes made in the Detailed Project Report (DPR) before the project's allotment will be evaluated, particularly in terms of technical and financial aspects.

The process by which the Government of Sikkim and Sikkim Power and Infrastructure Company Limited (SPICL) acquired shares in the project and the valuation of these shares will be scrutinized.

The award of contracts and subcontracts by Sikkim Urja Limited (formerly known as Teesta Urja Limited - TUL) will be reviewed.

The sale of equity by Athena Projects Pvt. Ltd. to Asian Genco Pvt. Ltd. and other entities will be investigated.
The committee will examine all aspects of the project, including its execution, management, and related issues.

The Cabinet also directed the Sikkim Vigilance Police to conduct a comprehensive inquiry to determine if there is any criminal angle in the construction process of the Teesta Stage-III Dam Project.