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PTC India Financial Services seeks renewed bids for Panan Hydropower Project

Thursday, 10 Oct 2019
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PTC India Financial Services has sought fresh bids for the 300 MW Panan Hydropower Project in Sikkim as Himagiri Hydro Energy, which was awarded the project, has not been able to achieve financial closure.

Himagiri Hydro Energy was awarded the USD 383 million hydropower project in 2005. The implementation agreement with the Sikkim government has lapsed on 7 September 2019. The last date for bid submission for the project was 9 October 2019.

The state government is to infuse 26 percent equity in the joint venture project, which proposes to construct a dam across Rangyongchu river, at the foot of Lingzya village in North Sikkim.

The state government holds 26 percent stake in the project and is expected to receive royalty in the form of power at 12 percent for the first 15 years which will be later increased to 15 percent from the 16th to the 35th year. Following this, the project is scheduled to come under full ownership of the state.

 

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