Sikkim to ask for more free power share from hydro stations

Sikkim to ask for higher percentage of free share of the power output from hydropower projects in state to ensure high amount of additional gain.

Gangtok, 5 March, 2013:

As a top up on its ambitious target of establishing additional 4000MW hydropower producing projects by 2015,  Sikkim is going to ask for higher percentage of free share of the power output from these projects to ensure high amount of additional gain.

“Against usually agreed free share of 12% of output by the developing agencies for us as host state, we are preparing to ask for higher percentage as our own free share. We are preparing papers to take up this issue with the center,” Sikkim CM Pawan Chamling told ET.

As the present system goes, the private or Public entrepreneurs developing Hydropower projects in Sikkim are supposed to give 12% of the output to Sikkim free of cost for first 10 years. In the following years, this share is to increase to 15%. “Now we will ask for minimum 15% from the very first year and also may be subsequent escalation of that afterward,” said Mr. Chamling.

Clear enough, acceptance of the demand by the central government and other concerned authorities will give Sikkim a sky high level of financial benefit.

According to Central Electricity Authority’s latest status report, against present peak demand of 117 MW and total annual demand of 440 Million Units of power, Sikkim already has a steady supply of near 100MW at peak demand or around 400 Million Units in total. By 2016, the demand is likely to go up to 144 MW or 528 Million Units. The state hosts 800MW of financially viable potential.

But by then, the new 4000MW installed capacity will add up additional 480MW of free power (@ present 12% rate) in Sikkim’s bag making it a state with over 300% excess power in hand to trade for financial gain. But, at 15% rate, this excess figure will touch 400% giving even higher boost to Sikkim’s Government exchequer.

And. “Hydropower is our compulsion. Without much of other resources ready in hand, we have no suitable alternative other than proper management and utilization of our hydropower potential,” said Mr. Chamling.

Courtesy: The Economic Times