Friday, August 07, 2009

Huge revenue and prosperity from hydro project in Sikkim not realistic - ACT

GANGTOK, August 6: Basing on the White Paper on hydel projects, the Affected Citizens of Teesta has said that the State Government’s contribution of 26 percent equity share in the hydel projects through loans taken from project developers and the subsequent repayment with interest from 12 percent free power that the state is to get from the projects has dazzled the public with promises of huge revenue and prosperity.
Quoting the White Paper that taking a loan for equity contribution might not be very attractive proposition, ACT general secretary Dawa Lepcha has questioned the reasons for the random implementation of numerous projects in such haste “if the future prospect of revenue generation on which the hydel projects are being justified and glorified is in serious doubt”.
He has further raised concerns whether projects would function as being projected before the loans are paid back given the volatile nature of rivers, landscapes and the receding glaciers.
He added that the paragraph from the White Paper surely does not give a promising picture.