for appraisal of pre investment ac

65
Government of India Ministry of Power NOTE FOR CONSIDERATION OF PUBLIC INVESTMENT BOARD (PIB) FOR APPRAISAL OF PRE INVESTMENT ACTIVITIES IN RESPECT OF TEESTA-IV HYDROELECTRIC PROJECT 520 MW (4x130), IN SIKKIM TO BE EXECUTED BY NHPC LIMITED

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Government of India

Ministry of Power

NOTE FOR CONSIDERATION

OF

PUBLIC INVESTMENT BOARD (PIB)

FOR APPRAISAL OF PRE INVESTMENT ACTIVITIES

IN RESPECT OF

TEESTA-IV HYDROELECTRIC PROJECT

520 MW (4x130), IN SIKKIM

TO BE EXECUTED BY NHPC LIMITED

f .

' CHECKLIST FOR THE EFC/ PIB MEMO

Particulars

' Whether proposal has been prepared in the prescribed EFC/ Pta format

Whether an Executive Summary has been attached

Whether 'In-principle' approval of the Planning Commission has been taken and funding tie up

Whether comments of Financial Advisor/ IFD have been attached with EFC/ PIB Memo

. --- . ' -.... - ·.

Whether evaluation report if any has been enclosed with the EFC/ PIB memo

Whether feasibility report, If any, has been'' . appended with the EFC/ PIB Memo

Wh~ttl~r mandatory clearances I approvals have beeri obtained

~tf!~ra soft copy of the EFC/ PIB Memo has -bein attaChed .

Indicate Y or N

y '~

N

Not·Applicable

·-·

-

Not Applicable

N

y_

y

INDEX

S.N. Plate Description of Item Page No. No./Annex No.

1 Checklist

2 PIB Note 1-18 3 Plates

Plate-I Location Map 19 Plate-II. Construction Schedule 20-21

4 Annexure Annex-1 Abstract of Present Day Cost 22 Annex-2 Abstract of Completion Cost 23 Annex-3 Concurrence by CEA 24-32 Annex-4 Forest Clearance by MOEF 33-36 Annex-5 Environment Clearance by MOEF 37-42 Annex-6 MemorandurrL of Agreement (MOA) between 43'-50

Govt. of Sikkim& NHPC Ltd. Annex-7 B-Land Cost details at· Present Day Cost 51 Annex-8 Defence Clearance by Ministry_ of Defence 52-54 Annex-9 Clearance by.MoWR from International Angle 55 Annex-10 Progress on various action point as per MOU 56-62

between Govt. of Sikkim & NHPC Ltd.

No. 2/4/2005-NHPC (Vol. II) Government of India

Ministry of Power

MEMORANDUM FOR PUBUC INVESTMENT BOARD (Pm) ON PRE INVESTMENT ACTIVITIES

OF TEESTA HYDROELECTRIC PROJECT STAGE-IV 520 MW (4 x 130), SIKKIM

1 Proposal identification

1.1 Title of the Proposal:

Pre-investment activities of Teesta Hydro-electric Project (HEP) Stage-IV (520

MW) by NHPC Ltd. at an estimated cost of Rs 167.35 Crore.

1.2 Name of the sponsoring agency (Ministry/ DepartmenU Autonomous Body/Central PSE):

Ministry of Power and NHPC.

1.3 Proposed duration ofthe Proposal/Scheme:

The pre-investment activities of project shall continue upto September, 2015 (till

receipt of CCEA approval for implementation). The project is scheduled to be

completed in 74 months from the date of Govt. sanction i.e. CCEA approval.

1.4 Total cost of the Proposal over the proposed duration:

i) Central Electricity Authority (CEA) accorded concurrence to the project vide

letter dated 13.05.2010 at an estimated cost of Rs. 3594.74 crore including

Interest During Construction (IDC) & Financing Charges (FC) of Rs. 686.84

crore at July, 2009 PL.

ii) The estimated cost has been updated at Apr, 2015 PL which works out to Rs.

5013.79 Crore including IDC & FC of Rs. 981.34 Crore. The abstract of cost at

present day and at completion is placed at Annex-1 and Annex-2 respectively.

This cost includes Pre-investment activities cost.

iii) The total cost of pre-investment activities works of the project over the

proposed duration i.e. upto September, 2015 is estimated to be Rs. 167.35

Crore (Refer para 7.1 ).

1.5. Nature of scheme: Central Sector/ Centrally Sponsored/ Additional Central Assistance:

Central Sector.

2 Proposal Category:

2.1 Please indicate which category the proposal belongs to:

(~} Cohtir.uhg scheme fr~.n past Plan periods and included in cunent Plan pel'iod.

Not applicable.

(b) New Plan Proposal included in the current Plan period

It is a new plan scheme for which implementation agreement was signed

with Govt. of Sikkim in the year 2006. Thereafter detailed project reports

were prepared and statutory clearances were obtained. The construction

work of the scheme is proposed to be started in 2nd half of 2015 (in the 12th

Plan) after Govt. approval and the benefit will accrue in the 13th Plan. (i.e.

2021-22). The project has been included in the 1ih National Electricity Plan

of CEA.

(c) New Plan proposal not included in the current Plan period

Not applicable.

2.2 If proposal pertains to category 2.1 (a), then please indicate the benefits already accrued and expenditure already incurred.

Not applicable.

2.2(a) Also for proposals belonging to category 2.1 (a), an evaluation report by an independent agency with comments of F AIIFD thereon may be provided along with following details as Annexure to EFC/PIB memo:

Commencement Name of Details of lnd~endent Evaluation of Scheme & Evaluating

Methodology Major Main Year of Agency Evaluation Findings Recommendations

Not Applicable

2.2 (b) If there are changes proposed in the proposal belonging to category 2.1(a), please provide existing provisions and proposed changes against each component in tabular form along with financial . implications due to the proposed changes:

Existing New/ ·changes Reason for Financial Financial Componen Revised proposed changes in Implication implication t Com pone in Existing existing in the last of addition/

nt Component component Plan chauge to s s and proposal

addition of new component s

Not Applicable

2.3 If the proposal pertains to category 2.1(c), please indicate whether in­principle approval of Planning Commission has been obtained.

Not applicable.

2

2.4 Please indicate in case of new Centrally Sponsored Scheme or 1\i'iajor change in ongoing CSS, whether States/Uls have been consulted and their consent obtained to implement the scheme with proposed sharing of funds.

Not Applicable.

3 Justification for the Proposal

3.1 The justification for taking up new I continuing the ongoing. proposal may be provided in terms of:

i) Demand and supply analysis to identify gaps.

With the commissioning ofTeesta HE Project, Stage-IV, the demand supply

. position of power in NE Region will be surplus in peaking and energy

availability. The balance power from this project would be transferred to

Eastern Region, which is indicated as power deficit regions.

ii) Conformity with the Plan Priorities and National objectives

Construction of Teesta HE Project, Stage-IV shall be started in 2015, which is

in conformity with the 1 ih Plan priorities.

Recognizing hydroelectric projects as the most economic and preferred

source of electricity, Government of India has set objectives for accelerating

the share of hydro power generation in its· 'Policy on Hydro Power

·Development (August, 1998) to not only maintain the then hydro-thermal mix

of about 19:81 but to move towards the ideal mix of 40:60. This is in

conformity with the Hydro Power Policy of 2008.

The objective. of the project is to develop hydro potential of Teesta river in

T eesta basin and accordingly it is one of the project proposed to be

implemented by NHPC in cascade manner with other projects on Teesta river.

iii) Problems to be addressed at local/regional/national levels, as the case may be, through scheme/project.

Peak and Energy shortage as well as adverse mix of hydro-thermal

generation mix in Northern & Eastern Regions will get addressed to some

extent through this project.

3.2 The alternatives that have been considered before firming up the design of the proposal may be stated. (This should also include alternate modes of proposal delivery, e.g. outsourcing, PPP etc. that have been considered).

Hydroelectric projects are site specific. While selecting the location of Dam

and powerhouse, availability of discharge and head along with techno­

economic aspects are considered. Location map is shown in Plate-1.

3

The prowct pr-oposcO:! h:=:s heen cleared by Central Electricity Authority from

Techno Economic angle.

3.3 Please state whether the project proposal has objectives and coverage which overlap with projects/schemes being implemented by the same or another agency (Ministry/Department/State Government). !n cases of overlap, please state why the proposal needs to be considered as a separate stand aloble effort.

Not applicable

4. Proposal Objectives and targets

4.1 The objectives of the proposal may be mentioned. These objectives should flow from the proposal justification.

The objective of the project is to develop hydro potential of Teesta river in

Teesta basin and it is one of the project proposed to be implemented by NHPC

in cascade manner with other projects on T eesta river.

With the commissioning of Teesta HE Project, Stage-IV, the demand supply

position of power in NE Region will be surplus in peaking and energy

availability. The balance power from this project would be transferred to

Eastern Region, which is indicated as power deficit regions.

In connection with development of Teesta-IV HE Project, proposal for carrying

out preconstruction and infrastructure development activities prior to Govt.

sanction, has been framed, so that construction can be started immediately

after receiving CCEA approval for implementation.

4.2 The specific targets proposed to be achieved of the proposal may be mentioned. These targets should be necessary measurable. These should also be monitorable, against baseline data. The baseline may be indicated. The target should be in tabular form as shown below.

Component Year Total

Year 1 Year 2 & so on Physical Financial Total Total

Physicgl I Fif'13ndal Physical I Financial

The pre-construction activities needed for start of project shall be completed by

September, 2015. The pre-construction activities includes activities like

preparation of PFRs I FRs I DPRs; undertaking surveys I investigations of all

types required for the project; preliminary land acquisition for acquiring right of

way or initiating work on the project site; collection of environmental data;

preparation of Environment Management Plans, Forestry and Wild Life

clearances; construction of access roads, minor bridges, culverts, power lines,

water lines, site offices, temporary accommodation and so on, compensatory

4

afforestation as per MoEF guidelines; and payment of NPV towards conversion

of forest land for non forest purposes.

With regard to financial targets, the same is given at point no 7.1, wherein the

yearly targets include expenditure under all heads i.e. A- Preliminary, 8- Land,

K-Building, 0- Miscellaneous, Q- Special T&P, R- Communication, X­

Environment & Ecology and Establishment etc.

4.3 The outcomes of the proposal to be achieved should be indicated. These outcomes should be in the form of measurable indicators which can evaluate the proposal on quarterly I half yearly./ annual/ plan basis.

The pre-investment activities of project is scheduled to be completed by

September, 2015, which will facilitate to start of work immediately after receipt

of Govt. sanction receipt of Govt. sanction. The project is scheduled to be

completed in 74 months from the date of sanction by Govt. of India as per the

concurrence accorded by CEA. The construction schedu,le indicatino timeline of

important activities etc. is given at Plate- II. On completion of the project with

installed capacity of 520 MW, it will produce annual energy of 2373 MU (Design

Energy).

4.4 Briefly explain . the objectives of the other programmes I projects undertaken by Ministry/Dept which are in convergence with the objectives of proposed proposal.

Not Applicable.

4.5 Please indicate whether the proposal is for Current Plan only or will continue in next Plan also.

The pre-investment activities started in 11th Plan, are continuing in 12th Plan -·- .

and shall be completed in 12th Plan itself. The implementation of the project

shall be commenced in 12th Plan (20 12-17) after Govt. approval and shall be

continued in 13th Plan (2017-22).

5 Gender Analysis of the Proposal

5.1 Briefly explain the specific objectives of the proposal relating only to women.

Not Applicable.

5.2 In case the proposal has gender components, please provide the following information in tabular form as shown below.

Gender Component % of total expenditure on this component

Component 1 ,2,3 & so on Not Applicable

5

6. Prc·poscd design

6,.1 Briefly explain the proposal Design. This should include ail components of the proposal fnduding.

L Scope of the project

Teesta H.E. Project, Stage-IV (4x130 MW) is situated in the State of Sikkim on

river Teesta. It has been envisaged as run-of-the-river scheme to exploit gross

head of about 170m. The dam site is located at 3.5 km d/s of confluence of river

Teesta with Tolungchhu. The project is a part of the hydropower- cascade

development evolved by CWC. The project envisages construction of 1 08.5m

high (above deepest foundation level) and 197.2 m long concrete gravity dam.

The project is a 'Run of the river scheme' with diurnal storage for providing a

daily peaking power.

The power station will be equipped with four Francis turbine/ generator, each of

130 MW and single-phase 11/400/.V3 KV transformers. 520 MW shall be

evacuated through 400 KV transmission line.

The DPR of project having installed capacity of 520 MW (4x130 MW) was

submitted to Central Electricity Authority (CEA), which was cleared by CEA on

13.05.2010 for a cost of Rs. 3494.74 crore at July, 2009 PL (Annex-3). As per

TEC issued by CEA, the Annual Design Energy is 2373 MUs in a 90%

dependable year by utilizing maximum net head of 159.09m.

6.2 In case the proposal is specific to any location, area and segment of population please state the basis for selection. Details regarding special physical features, technology, etc., may be given.

NHPC shall execute Teesta HE Project Stage-IV which is location specific. While

selecting the location of Dam and Power House, availability of discharge, head,

geology of the area, environmental aspects etc. along with techno-economic

feasibility have been considered.

6.3 Please indicate whether the proposal is secured against natural/ man-made disasters like floods, cyclones, earthquakes, tsunamis, etc. If the proposal involves creation/ modification of structural and engineering assets or change in land use plans, disaster management concerns should be assessed.

The present proposal is only for pre-construction works, additional investigations,

development of essential infrastructural facilities, payment of NPV, purchase of

land etc.

The project has been designed based on National Building Code 2005,

appropriate BIS C.odes, NOMA guidelines and MoEF&CC guidelines. It is

confirmed that all aspects related to risks has been covered.

6

The project involves creation of structural & engineering FJssP.ts, whh::h include

change to existing land use plan. Disaster Management has been formulated as

a part of EIA/EMP Report.

6.4 In case ofbeneficiary oriented proposal, the mechanism for identification of the beneficiary and the linkage of beneficiary identification with UID numbers, on a voluntary I non- mandatory basis, may be indicated.

Power Purchase Agreement (PPA) is signed before commissioning of the project

with the beneficiaries to whom Power is allocated by MOP I CEA. In case of

Teesta-IV, power has been allocated to six beneficiaries. PPA has already been

signed with 3 beneficiaries and discussion is in progress with others.

For evacuation of power from project, the transmission shall be taken up by

PGCIL. After CCEA sanction, the matter shall be·taken up with PGCIL.

6.5 Wherever possible, the mode of delivery should involve the Panchayati Raj Institutions and Urban Local Bodies. When~ this is intended, the preparedness and the ability of the Panchayats for executing the project may be indicated. If exceptions are to be made, the reasons may be explained.

Not applicable.

6.6 Whether the land required for the proposal is in possession of the agency. In case the proposal involves land acquisition or environmental clearances, the specific requirements and the status in this regard may be indicated.

The total land required for the project is 324.07 ha out of which ptivate land

requirement is 180.58 ha and forest land requirement is 143.49 ha. The total

forest land requirement also includes 14.40 ha for underground works. The project

has been accorded Forest Clearance (Stage-1) on 26.02.2013 (Annex-4) and

Environment clearance on 09.01.2014 (Annex-5) by Ministry of Environment &

Forest.

6. 7 The legacy arrangements after the scheduled proposal duration may be mentioned. In case the project creates assets, arrangements for their maintenance and upkeep may be stated. (For example the proposal assets may be taken over and maintained by the State Government/PRis; ULBs)

The Project after completion shall be maintained by NHPC on ownership basis

as per clause 19 of the MeA signed on 01.03.2006 (Annex-G) between NHPC

and Govt. of Sikkim given as under:

"It is specifically agreed that the Ownership of the Project shall vest in the

Corp6 ration".

6.8 Please indicate:

• Inter-linkage with other schemes mainly in terms of coverage, impact. Outcomes, etc.

7

Not Appiicable

o Steps taken towards convergence with other schemes to achieve the intended outcomes may also be stated.

Not Applicable.

o Steps taken towards convergence in flow of funds from other schemes

The present proposal is only for pre-construction works, additional

investigations, development of essential infrastructural facilities, payment of

NPV, purchase of land etc. The funds for the same shall be borne by NHPC

itself, being part of equity.

7. Proposal cost

7.1 Please provide the proposal cost estimate for its scheduled duration along with a break- up of year-wise, component-wise expenses segregated into non-recurring and recurring expenses

The activity wise breakup of cost for pre-investment activates as follows:

Amount (Rs. In Crore)

S.No. Description Expenditure Apri115 to Total incurred September, 15 Upto March 15

1 Head A-Preliminary 10.92 0.50 11.42

B-Land - - -K-Building 0.14 - 0.14 0-Miscellaneous 12.94 2.97 15.91 Q..-Special Tools & 0.16 - 0.16 Plants R-Communication - - -X-Environment & 0.56 50.60 51.16 Ecology Sub Total (i)·· 24.72 54.07 78.79 Establishment 76.39 12.60 88.99

~ ---- ·--------Receipt & Recovery -0.43 - -0.43 Sub Total (II) 75.96 12.60 88.56 Grand Total 100.68 66.67 167.35

7.2 In case the land is to be acquired, the details of cost of land and cost of rehabilitation/resettlement may be provided.

The total private land requirement for the project is 180.58 ha.

Regarding R&R, it is to mention that in order to empower and satisfy the project

affected persons (directly or indirectly) a comprehensive National Rehabilitation

8

and Resettlement Policy (NRRP, 2007) has already been circulated by Ministry

of Rural Development, Government of India. In addition, NHPC Ltd. has its own

Resettlement and Rehabilitation Policy (2007) with added benefits. Sikkim,

where the project is located, does not have approved state level R&R policies,

therefore Resettlement and Rehabilitation Policy, 2007 of NHPC has been

followed in preparing the R&R plan for the proposed HE project. Resettlement

and Rehabilitation Plan covers the relief to project affected families and

development of infrastructure in the affected area and the surrounding areas of

the project. It is expected that the project that envisages contributing to the

overall infrastructural development of the nation will also provide immense

support to the local economy as well as augment the needed infrastructure at

local levels.

The R&R Plan approved by State Govt. shall be implemented

The cost of Rehabilitation & Resettlement is Rs.1784.38 lakhs. The provision of

cost of land has been kept under 8: Land of the project cost estimate. During

pre-construction stage, only part of land for colony, office & basic infrastructure

development shall be acquired. In addition to it, NPV for forest land shall be

deposited. The details of cost of land for both pre-investment activities as well

as for implementation, are enclosed as Annex-7.

7.3 Estimated expenditure on proposal administration (including expenses on consultants, monitoring, evaluation, IEC, etc.) may be separately indicated.

The provision on Project Administration is kept under head of Establishment of

the project cost estimate. (Refer para 7.1 }.

7.4 The basis of these cost estimates along with the reference dates (it should not be more than six months old) for normative costing may be provided .. Please indicate the firmness of the estimates, component wise, with the extent(+/-) of the expected variation.

The cost estimate is based on the rates of equipment, roads and buildings etc.

prevailing in the project area and based on current expenditure being incurred

under Establishment & a-Miscellaneous work heads. ·

7.5 In case the proposal involves payout of subsidy, the year wise and component wise expected outgo, up to the last year of payout, may be indicated.

Not Applicable.

7.6 In case the proposal intends to create capital assets, employ specialized manpower or involves other activities that necessitate a Recurring Cost of Capital Ex-penditure (RCCE) (e.g., maintenance and upkeep costs of

9

assets, salary costs of rnanpower, etc.} over the !ifetime of the asset, such expenditures, on an annual basis, may be indicated in the proposal.

Not Applicable.

7.7 It may also be stated whether the agency which would be assigned this legacy responsibility has been consulted and has agreed to bear the continuing recurring expenditure (e.g., the State Governments may need to incur the maintenance and upkeep costs of assets created under Pian schemes).

Not Applicable.

7.8 The cost towards salary /fees/ emoluments of the proposal human resources as being proposed should be indicated {procedure for seeking approval of the human resource requirements is detailed at para-9 below).

The said provision has been kept in the project cost estimate under head of

Establishment (Para 7.1).

7.9 The component of the costs mentioned at 7.1-7.8, that will be shared by the State Governments/PRI/User Beneficiaries may be indicated.

The project shall be executed by NHPC on its own. There is no contribution

from State Govt. as per MoU signed between NHPC Ltd. and Govt. of Sikkim.

7.10 In the event of fund transfer being made to State Govtsllocal bodies or other organizations, "grants for creation of capital assets" may be indicated separately.

Not Applicable.

8. Proposal : Financing

8.1 The source of financing for the proposal may be indicated. In case of proposal already included in the FYP, the specific earmarking may be mentioned.

The financing of the Teesta HE Project Stage- IV is proposed in the following

manner:-

(Rs. in Crores)

Source Percentage Apr, 2015 PL Completion Cost ·-~---··

Equity

Pre-investment 167.35 167.35 activities 30%

Implementation of 1336.79 1678.12 Project

Total Equity (A) 1504.14 1845.47

Commercial Loan

Pre-investment 70% activities - -

--Implementation of 3509.65 4306.12 ~

10

I

·--------·-- -----~-r----------~-~r --~-·--- -··-··--··---·- ----·-~

Project I i

t I

Total Commercial I Loan (B) I 3509.65 4306.12

Total Project Cost

I I 100% 501.3.79 6151.60 (A+B) I

For pre-construction activities, NHPC shall use its own internal resources for

financing.

For implementation, the capital cost of the project is proposed to be financed on

70:30 debt equity ratio and the flow of equity should be in pari passu to the flow of

commercial loan. The interest on loan has been taken as 10.10% p.a. and one

time financing charges @ 0.25% upfront have been assessed. Financing of equity

is proposed to be funded from Internal Resources of NHPC. Financing of debt

component will be through international and domestic financial institutions with

whom tie up would be made after investment sanction is accorded by Govt. of

India.

8.2 Whether the funding requirements have been fully tied up with Planning Commission may be indicated. The quantum of the Plan allocation may be indicated.

Not applicable as NHPC shall develop the scheme without Gross Budgetary

Support.

8.3 If there are gaps in the financing of the proposal, the sponsoring agency may indicate how such gaps in FYP as well as the Annual Plans will be addressed.

Not Applicable.

8.4 If external sources are intended, the sponsoring agency may indicate whether such funds have been tied up. In case firm commitment is not available, alternative plans for arranging funds may be indicated.

Refer 8.1 above.

8.5 In case of partial allocation of funds for the proposal, then the components which may be removed/reduced may be indicated.

Not applicable.

8.6 Please provide the following details in respect of project proposal:

• Debt-equity ratio along with justification.

The present proposal is only for pre-construction works, additional

investigations, development of essential infrastructural facilities, payment of·

NPV, purchase of land etc. The funds for the same shall be borne by NHPC

itself, being part of equity.

11

i

I i

j I

I I

However, for iiT'rl!ementatinn of the project, the Debt and equity sha II be

deployed in the ratio of70 30 as per the Tariff Notification 2014-19 of CERC.

o In case of, funding from internal resources (IR), availability of IR may be supported by projections and their deployment on various projects.

Subject to prescribed Debt-Equity ratio of Teesta- IV project, funding of IR, shall

be as per Corporation's 1 ih Plan projection of Rs. 20000 crore for pre­

construction activities as well as construction activities thereafter.

NHPC would be. in position to generate the desired fund required for equity

deployment upto 2021-22 as elaborated in the following paragraphs:

Considering commissioning of two new Power Stations i.e. TLDP-IV and

Kishanganga in 2016-17, the projected year-wise closing cash balance after

deployment of equity contribution from IR for existing ongoing and forthcoming

constructions projects shall be as under·

Financial Year Closing cash balance (Rs. In crore)

2015-16 5072.53

2016-17 3235.16

2017-18 1379.19

2018-19 680.62

2019-20 565.95

2020-21 614.28

-2021-22 717.82

IR generation from 2018-19 to 2021-22 has been estimated based on following

assumption:

a) Two other new Projects i.e. ParbatHI (Jul-18) and Subansiri Lower (Nov-

18) shall be corrtmissiuned during 2018-19.

b) ROI on these projects has been considered@ 15.50% on equity (30% of

Project Cost) from the date of commissioning. Accordingly, estimated PAT

of 2017-18 has been escalated to the extent of ROI of these two projects

to arrive PAT of 2018-19 and onwards.

c) Depreciation has been considered @5.28% of Project cost as per CERC

norm. Accordingly, estimated depreciation of 2011-18 has been escalated

to the extent of 5.28% of project ~ost to get depreciation of 2018-19 and

onwards.

12

d) Dividend has been considered 30% of PAT. And Dividend Tax of 16.995%

has been considered.

Ill Please indicate funding tie-ups for loans components both domestic and foreign, along-with terms and conditions of loan based on consent/ comfort letters.

Not applicable as NHPC shall develop the scheme from internal resources without

Gross Budgetary Support.

9. Proposal: Human Resources

9.1 In· case posts (permanent or temporary) are intended to be created, a separate proposal may be sent on file to Personnel Division of Department of Expenditure. Such proposals may be sent only after the main proposal is recommended by the appropriate appraisal body (SFC, EFC, etc.).

The same shall be dealt as per norms applicable. The manpower would be

deployed at the pmjP.r.t from the existing NHPC offices and projects and as per

clause no. 8 (i) & (ii) of MoA between NHPC & Govt. of Sikkim. (Annex-6).

9.2 In case outsourcing of services or hiring of consultants is intended, brief details of the same may be indicated. It may also be certified that the relevant GFR provisions will be followed while engaging the agency/consultant.

NHPC has required expertise presently. However external consultant may be

engaged for specific cases, if required ..

9.3 In case additional manpower requirement please indicate the phased requirement over the proposal timeline (i.e. year wise break-up of the manpower requirement).

Not Applicable.

10. Proposal viability

10.1 In case of proposals which have identified stream of financial returns, the financial internal rate of return may be calculated. The hurdle rate is considered at 12%.

Not Applicable, as the proposal is for pre-investment activities.

10.2 In case of proposals where financial returns are not readily quantifiable (typically social development proposals), the measurable benefits/outcomes may be indicated.

Not Applicable, as the proposal is for pre-investment activities.

11. Proposal Implementation and monitoring

11.1 Implementation agency (s) may be indicated.

NHPC Ltd.

13

11.2 The administrative structure for imp!eme:&ting the p&·op~al may be stated. Usuaily new structures/entities etc. are by and large to be avoided. In case new structures are intended to be created for administering the scheme, the details of such structures and specific justification for the same may be provided. Such new structure should be proposed only if it is has been established after due analysis, tlhat existing structures cannot be iever-ed for the proposed/additional work.

General Manager having enough experience in the area of investigation,

planning and construction of hydroelectric projects will be the Nodal Officer for

Teesta HE Project Stage-IV. The other members of his team would include other

technical and other professionals.

11.3 The completion schedule of the proposal indicating timelines of activities should be provided in PERT/Bar Chart along with critical milestones.

The pre-construction activities, which are at present continuing, shall be

continued upto Sept, 2015 till receipt of Govt. approval for construction of the

project. The completion schedule of the proposal indicating timelines of activities

in PERT/Bar Chart along with critical milestones enclosed as Plate-11. The

project is scheduled to be completed in 74 months after receipt of Govt.

sanction.

11.4 Mode of Implementation: Departmental/ ContracU Turnkey contracU EPC/ PPP, etc. with justification may be given.

The present proposal is only for pre-construction works, additional

investigations, development of essential infrastructural facilities, payment of

NPV, purchase of land etc. These works are mainly carried out departmentally.

The Construction of the project is proposed to be executed through package

wise contract with International Competitive Bidding mode.

11.5 Nodal officer identified I appointed for being directly in charge and overseeing progress of the proposal may be indicated. Details about his status, past experience in executing similar proposals and balance tenure left for steering the proposal may also be mentioned. He/ She should normally be appointed for entire duration of the proposal.

Refer para 11.2.

11.6 The monitoring framework preferably on MIS for the proposal may be indicated. The arrangements for audiUsocial audit of the proposal may also be stated.

The project would be monitored on regular basis by NHPC through project

Monitoring and Services Group at the Corporate Office. Regarding audit, the

mechanisms are in place to conduct periodic audit of projects in NHPC.

14

12. Proposal sensitivities/uncertainties

12.1 Any foreseeable constraints/uncertainties which can affect the technical design, costing and implementation of the project may be indicated.

At present, no constraints/uncertainties are foreseen. There is no law and order

problem in the project area .. State Govt. will be responsible for monitoring law

. and order.

12.2 The likely impact of these constraints/uncertainties on the proposal parameters may be stated. In particular, the sensitivity of the proposal cost, proposal schedule and proposal viability towards the possible constraints/uncertainties may be mentioned.

Not applicable.

13. Mandatory approvals/ clearances

The details regarding the requirement of mandatory approvals/ clearances of various local, state and national bodies and their availability may be indicated in a tabular form

The project has received following clearances:

S. No. Approvals/ clearances Agency concerned Availability (YIN) i) Techno Economic Central Electricity y

Appraisal (Annex-3) Authority ii) Forest Clearance Ministry of y

(Stage-!) Environment & .(Annex-4) Forests

iii) Environment Clearance Ministry of y (Annex-4) Environment &

Forests iv) MOU signed between Ministry of Power, y

Govt. of Sikkim and Govt. of Sikkim & NHPC Ltd. (Annex-5) NHPC Ltd.

v) . Defence Clearance Ministry of Defence y · (Annex-8)

v) MoWR clearance from Ministry of Water y International angle Resource (Annex-9)

14. Consultations with the Public, State Governments, External Research

Agencies, Think Tanks, etc.

14.1 To the extent possible and practicable, such consultations may be done by the Administrative Ministries. The draft Proposals may be placed on the web site of the sponsoring Ministries and comments invited from the general public. The draft proposals may be formulated I finalized taking into account such comments. Details in this regard may be indicated in the EFC/ PIB memo.

The PIB Memo is being circulated to various Departments/Ministries before

posing the same to Public Investment Board. On circulation, if there are

comments of any departmenUministries, the reply to same will be communicated

15

and Incorporated in the PIB Memo before placing to Public Investment Board

(PI B).

15. Concurrence of Financial Advisor

'i 5.1 Comments/ Concurrence of Financial Adviser may lbe indicated along with

reply of the Administrative Ministry.

Observation - 01 : It may be mentioned that the draft PIB memo for seeking

approval of expenditure carried out on pre-investment activities of Teesta HE

Project, Stage-IV, has been examined and concurred by IF Division. However,

while concurring the proposal, IF Division has mentioned that the draft proforma

does not capture basic parameters of the entire project in various columns

perhaps as the present proposal is for approval of expenditure on pre-investment

activities only. It has been desired that in order to have a holistic picture of the

project, its cost, lirnelines and mile-stones, may be incorporated in the relevant

columns. As such, NHPC vide letter dated 03.07.2015 has been requested to

take appropriate action and submit revised PIB Memo seeking approval for pre­

investment activities in respect of Teesta HE Project, Stage-IV.

Reply -01 : In this regard, the point wise replies to observations of IF Division are

given here in below:

S.No. Observation Reply

2 (i) Para 1.3 on proposed duration of the Para modified suitably

proposed I scheme

2 (ii) Para 1 .4 on total cost of the project over Para modified suitably

the proposed duration with a broad break-

up component wise

2 (iii) Para2.2(b) may also include the time-lines Para 2.2 (b) pertains to

by which the project would be started and changes in para 2.1 (a),

completed in addition to what is indicated which in this case Not

Applicable. Therefore, no

change is required.

2 (iv) Para 4.3 brief outline on the outcomes of Para modified suitably

the project as a whole

2 (v) Para 4.5 may be expanded to include the Para modified suitably

period of implementation of the project

16

2 (vi) Para 7.2 - The cost of land both for pre- Para modified s11itably.

investment activities as well as for the

project may be indicated. Currently there

is no mention of the cost of land at all

2 (vii) Para 8.1- The source of financing of the Para modified suitably

estimated project cost besides in addition

to the details already given in respect of

pre-investment expenditure

2 (viii) Para 11.3 - The completion schedule of Para modified suitably

the project indicating broad timelines of

the project as a whole, may be given

2 (ix) Para 11.4 - Indication also about the Para modified suitably

project whether it will be implemented

departmentally or by other modes may be

added in this para

2 (x) Any other information about the whole Useful information are

project which may be useful for already covered in the

appreciating the proposal proposal.

3 (a) It may be clarified under Para 2.1 that It is clarified that the

whether the project is included in the 12'h project is included in the

Plan of .the Ministry as a Central sector 12'h National Electricity

project Plan of CEA. Accordingly,

para is modified.

3(b} If DPRIFR/PFR is already prepared, it DPR of the project has

may be enclosed as an Annexure been prepared by NHPC.

DPR is a six-volume bulky

document and contains

about 2000 pages. Hence

not attached ..

3 (c) The progress on various action points as The progress on various

per MoU between State Govt. and NHPC action points as per MoU

may be given in the form of a tabulated between State Govt. and

statement and attached as a separate NHPC is enclosed

Annex herewith s Annex-10.

17

L

3 (d) Rough cost estimate of private land to be The details of cost of land

acquired to be given under Para 7.2 has been provided in para

7.2.

3 (e) Para 7.9 : If there is no contribution from Para 7.9 has been

State Govt., it should be so mentioned. modified suitably.

MoU may be referred to

3 (f) Para 8.1 to 9.6: Funding pattern of the Para 8.1 to 11.6 have

entire project, IEBR component availability been modified suitably.

3 (g)

of sufficient IEBR etc. for execution of

project should be given

Par 11.3: PERT /Ba.r Chart for the entire

project should be given

16. Approvals

16.1 Please indicate the specific points on which approval of EFC/ PIB is sought.

Recommendation of the Public Investment Board is solicited for incurring

expenditure of Rs. 167.35 crore for pre-construction activities, which includes

expenditure of Rs. 104.80 crore already incurred on survey, investigations and

preparation of Detailed Project Report etc. upto June 2015 and expenditure being

incurred./ to be incurred beyond June 2015 atTeesta HE Project, Stage-IV (520

MW), Sikkim.

18

run Kumar Ve ma) Joint Secretary to the Govt. of India

Tel. No. 23714367

..... ~

N -

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C H I N A TIBET

WEST BENGAL

NOTES

CHINA

BAY OF BENGAL

6 .., '

1. NO DIMENSION SHALL BE MEASURED FROM THIS DRAWING.

LEGEND

INTERNATIONAL BOUNDARY ------­

STATE BOUNDARY

RIVER

TRIBUTARY

ROAD

DAM SITE

SCALE:-

~ ~ -

u 23 75 125M

1:Z800

""'"'>

~

~ \ e

1•""1 2

- ]Main works

l I I~~~~ Unit~

A [Div.ersion Tmnef -2 nos.12.5 m Dia and681 m & 593 m length)

~urn 2 2 \Porta

~

I 'ot I -+ lUU%~~00 2

2 g:~~~o~i!ru~~ ... :;r:c?:s Coffer I 252000 cum 6

3 Jet Grouting 4500 Sqm 4

C Dam & Spillway

1 Abutment stri in 51700 cum 3 2 River bed excavaticn 362800 cum 4 3 Plun e Pool EXCall'!l.tion 148000 cum 5 4 Dam Concretln below RBL 197625 Cum 7 5 Dam Concreting from RBL to EL 131750 cum 5

716

8 ~;t~O:~~":a~~m El716to EL / 270125 cum 12

] ____ jPrun_!;l_~~~l~_~.pran ·g-~~~~!!lJJ _____ J ... J1..!?9_9 .P_!c!!!! ~ e. _Eredion,Te~ting &C!:>mm .. issioning I' 100% job 22

!of 5 Nos Spi!lv,.,ay Gates Heist VVittl stop!ogs ar1d

----[,-- !Intake

2 3 I Excavation Of !ntar-e tunnels·

~(211mto2Pm)

0 -----------------., -- ---

lof 4 no-; intake Gales. Hoist \Nith Sk,p!ogs. Gantry Crane .intake Trash &Trash Rae!;:: Cleaning

4 Ereclion.Te-sting & \ of 4 nos Oesi!tmg Ch"'"'"'""'

F Silt flushing tulnets , 1 Excavation 2 Concreting 3 Adit for gate opera:ion cnamoer

L"_

nng & jof 8 nos Silt Fl!.!-sMh~

JAdlt portal '

, 4

Ts

15858/cum I 2.5 1UU'fuiJOO j ;~

41:1U M 4.0

742700 cum 24 203245 cum 10

100% Job 4

"""lm I '·" 1-0l.i"%l"JOb"_______ 6

2 Adit to HRT blfurc:aed from adit to 435 m 6 GOC

3 HRT excavation fr•m ist adit 1263 m 24 fr•Jm 1st adit 1263 m 12

dlt loHRT --~

8 L~~~~~t~;s:: i.termediate adit 15451m I 2!d

1545fm f 14

110 l~~ ~~~)RT & surge shaft bottom 378\m 1 "1.:.'1

1f HRT t-om 3fifadiC 1608 m ;;;u

........... n:. I SCHEDULE: TEESTA HE PROJECT STAGE-IV (4x130 MW) for DPR Purpose

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.... DETAIL OF 'NORK

4 IErE:ction & Co."tlmiSsion!ng of Surge Shaft Gates_ :4 Nos ) Presslre shaft 4 Nos Adil to too of oressure shaft ,Adit to bottom of pressure shaft

Excavation Horizintal portioo (Top)

3 I Excavation Horizintal portion (bottom)

4 I Excavation Vertical portion of ressure shaft

5 I Concreting of vertical portion of pressure shaft Erection cf Penstock Liners ( 4 Nos)

J JP:ower-House·&-Tra-nstonner-----cavern

1 !Construction of A\1cess tunnels Adit to Pil-l Cavem·l

Qty. I Unit I :; 100'<>IJoo

1151m 5051m

101 tojm 145 591m

15

4.5

18400icum T 12 i

8050icum j 12

100%IJob 12

r 245lm 2.5

166/m 1.5 dAd it to top of transformer cavern bifurcated from adit to pcrwer house

f- top I·- M"ilin Access Tunnel _ 487 !!!_ __ j~ · 4 !Excavation of powerhouse 1610oolcum ' 17

~--~~~!?il.~~~9..~0'Ner:~~----··-···.-·j······!~,c~_1- ~Q.. .. 6 Erection and OOmmtssior:rng of 100% Job 3 EOT crane in servk:e bay and ur.:H

Er$cl:ion of T~1rtin~ !!nd Generator atoog .,.,lti": Drt Testing vi Unit!

1oo%1J~- 39

8 I Erectiof"! of Turbine aind Generator 100% Job j 39 jalong -,.At!! Dry Testi,-.,g of Unit li

_L__ ___ ·.~~~~~~f-~d~-9 l;1:i:~t~;~;:i~~~G~:~or 100% Job 39

10 I Erection of Turb:ne and Generator along with Dry Testi"lg of Unit IV

11 )WetTestingahdCcrnmissicnir:g:of un:t 1

12 IWetTestir1g and CcrnmtssiO.~-;ng--:of un!l2

113-1~'\IE:t 'TE<stir"~g and Ccmmissioning ot

h-4-t~;:.t ~esling anc Ccrnmissionin.g of ~h unit4

15 !Excavation of transformer cavern

17 !Excavation of Cable Trench 253 M Longand5M*5M Excavation of Cable Tunnel 147M Long and 5 M Dia

161Concreting oftransf:rmercavem

T:w~:~\~~;~;,~:~:~ ~~~~!~at 18 !Erection (!fTransf(mfler 19

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2 Portal Cona'eting _6000 Cum i 1 3 I Main tunnel excavation 1249lm 9.5

~--~~M~!!!.!.\!!"1~_~_!)~~---- ______ ___~_ 12491~ ······-··---§ ___ _ 5 Branch tunnel excavation T ~m 2.5

Branch tunnel concreting 420im 2

DIS Surge Galler~(2 n~) -~~Ojm 4

Pot Head Pothead excavation 696241Cum Pothead concreting BOOOICum · .. -:;:;,;:;::;-'-'"''<:::< of (-:-S E.\<i!1ir:g :ov.c-:,j._;.:;:b

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TEESTA H. E. PROJECT, STAGE-IV, (4 x 130 MW)

(SIKKIM)

ABSTRACT OF COST

Rs. in Crs. Cost at July- Expenditure Cost at April-

S.No Description 09 PL(TEC till March-15 15 PL Level)

A- CIVIL WORKS

1. DIRECT CHARGES

I-WORKS

A- Preliminary 21.70 10.92 25.93

B-Land 99.50 138.48

C- Works 5113.33 756.14

J- Power Plant Civil Works 1182.61 1645.80

K- Buildings 101.74 0.14 141.54

M - Plantation 2.00 2.78

0 - Miscellaneous 33.00 12.94 40.86

P - Maintenance During Construction 19.02 0.00 26.47

Q - Special Tools and Plants 4.93 6.80

R- Communication 74.52 103.71

X - Environment & Ecology 70.65 0.56 98.10

Y - Losses on Stock 4.76 6.62

TOTAL OF I -WORKS 2157.77 24.56 2993.23

II - Establishment 150.00 76.39 261.61

Ill- Tools and Plants (1% of 1-Works) 21.58 0.00 30.03

IV - Suspense 0.00 0.00

V - Receipts & Recoveries (-) -3.50 -0.43 -4.70

TOTAL DIRECT CHARGES 2325.85 100.52 3280.17

2. INDIRECT CHARGES

I - Capitalised Value of abatement of Land Revenue 1.78 2.47

(5% of Cost of Culturable Land)

II- Audit & Account Charges (1% of 1-Works) 21.58 30.03

TOTAL INDIRECT CHARGES 23.36 0.00 32.50

TOTAL DIRECT & INDIRECT CHARGES 2349.21 100.52 3312.67

B - ELECTRICAL WORKS 558.69 719.77

TOTAL CIVIL+ ELECTRICAL (NET) 2907.90 100.52 4032.44

INTEREST DURING CONSTRUCTION 667.97 972.57

FINANCING CHARGES 18.87 8.77

TOTAL 3594.74 100.52 5013.79

TEESTA H. E. PROJECT, STAGE-IV, (4 x 130 MW) (SIKKIM)

ABSTRACT OF COMPLETION COST (Start level at Oct, 15 )

(Rs. in Crs) Amount Completion

S.No Description at PL Cost

July-09 A - CIVIL WORKS

1. DIRECT CHARGES I-WORKS A - Preliminary 21.70 28.55 8- Land 99.50 155.22 C- Works 543.33 976.39 J - Power Plant Civil Works 1182.61 2113.93 K - Buildings 101.74 164.39 M - Plantation 2.00 3.60 0- Miscellaneous 33.00 47.78 P - Maintenance During Construction 19.02 35.23 Q- Special Tools and Plants 4.93 7.83 R - Communication 74.52 119.80 X - Environment & Ecology 70.65 107.40 Y - Losses on Stock 4.76 8.81

TOTAL OF I - WORKS 2157.77 3768.92

II - Establishment 150.00 310.89

Ill -Tools and Plants (1% of I-Works) 21.58 38.50

IV - Suspense 0.00 0.00 J

V - Receipts & Recoveries (-) -3.50 -6.58 TOTAL DIRECT CHARGES 2325.85 4111.73

2. INDIRECT CHARGES I - Capitalised Value of abatement of Land Revenue 1.78 2.87 (5% of Cost of Culturable Land)

II- Audit & Account Charges (1% of I-Works) 21.58 39.34 TOTAL INDIRECT CHARGES 23.36 42.21

TOTAL DIRECT & INDIRECT CHARGES 2349.21 4153.94

8 - ELECTRICAL WORKS 558.69 839.73 ..

TOTAL CIVIL+ ELECTRICAL (NET) 2907.90 4993.66

INTEREST DURING CONSTRUCTION 1147.17 1147.17 FINANCING CHARGES 10.77 10.77

TOTAL 4065.83 6151.60

llisit<::! ~('! trrfiR:lo::1V!/ Central Eb·tri,·ity .\ utlwril'

CPR<i~znrf~cr/Office of Sce;·etary

::i'nn~/Scwa Bh;nan 3fR.il?.~/ R.K. l'lll"llill

onf~/ New Delhi- II 0606

1~-lRf.siT. : 9001-2008]

.j.i_

No.2/NHPC/58/CEA/08-PAC/ I 7 '3 ~-;-·- f: -:j- Dated I 'Z., ' May, 2010.

Subject:

OFFICE MEMORANDUM

Teesta Stage-J\i Hydro Electric Project (4x130=520 MW) in Sikkim by M/s NHPC Limit,ed at an estimated cost of US $ 13.125 Million + Rs.3530.99 Crores including IDC & FC of Rs,686.84 Crores at KE.rate Rs.48.57/US $ (at July, 2009 Price Level) - Issue of Concurrence.

1\J/s. NUPC Limited submitted four ( 4) sets of the Detailed Project Repurt (DPR) of the gcncratioq scheme ofTccsta Stage-IV Hydro Electric Project (4x.130-520 MW) in Sikkim vide their letter No.NH/PD/PC/Teesta-IV/1950 dated 25.9.2009 and eighteen(l8) sets vide their letter No, NH/PD/PC/Teesta-IV/2438 dated 1.12.2009. The presentation covering main aspects of the scheme was made by M/s. NHPC Limited in CEA on 21.12.2009 to appraisal groups of CEA/CWC/GSI wherein it was decided that DPR be

.., --------:: taken up for further examination in CEA, CWC & GSL

: i ¥:;_. L, \\\ The p.~·oposal fo~. es_tabli~hment ~f T._eesta Stag ... e-IV Hydro Electri~ ~roje.ct ( 4x 13?;:520 "% c--.' .I j MW) m North Stkbm Drstt. of Srkktmproposed by Mls. NHPC Llmrted was consrdered &<it= ~i r, \ in the 299th Meeting of CEA held on 15.4.2010 at Sewa Bhawan, R.K. Puram, New

l·.·ri~ ~Jj= ~i Delhi-110606 ·b ... as .... ed o.n th. e Agenda not·e ... circulated vide CEA le···t.ter No.3/106/299th l ~ ~ : '% /2006-PAC/1344-1369, dated 13.4.2010. .

' l&df \i9 In exercise of the powers vested with the Authority under Section 8 of the ,;,.,:~ Electricity Act, . 2003, the Central Electricity Authority accords Copcurrence to the "-,, __ ) aforesaid scheme at an estimated cost of US$ 13. i25 Million + Rs.3530.99 Crores

including !DC & FC of Rs.686.84 Crores at F.E,rate Rs.48.57/US $ (atJuly, 2009 Price Level) withthe following stip.ulations:- · ·

. . ' the cost of the scheme shall not exceed the above cost e;cept on account of:-

(a) (b)

(c) (d)

Variation in foreign exchange rate in respect of US$. Change in rates of Indian taxes and duties such as custom duty, excise duty, sales tax, works tax & service tax and additional taxes and duties levied, if~y, subsequent to issue of this O.M. Change in Indian Law resulting in change in cost. Variation in actual interest rate.

_;_---------z;.;-. -~------Int-erest-'Durffig-C--onstruetion-fiDGj-and--Finarrc-ing-C--har-ge-s-{-F--G:)--shaU...O~s--per-r --­

actuals but not exceeding the amount as indicated at Annex-! except for variation in actual interest rate(s) and the pro-rata variation inhardcost, as stated in clause 2 (1) (a), (b), (c) & (d) ofthis O.M.

0;

~=----- )?;,·.'5:·)0

i I

I I I I

j

3 The abstract of estimated Project Cost approved by CL,\. is funti::dlcd :1t Anncx-i, 1-A and 1-B. l'lw summary of tentative Financial Package. as submitted bv. I'd's. NHPC Limited and C<llhidcred by CEA and the salient featurc~S or the schen;e m:~ gt\en in Annex-Hand HI respectively.

4. This Concunence is subject to fulfilment of following conditions:

i) The following conditions/circumstances shall not be a reopener of the Project Cost I Concurrence:-

(a) Non-acquisition of land. (b) Non-finalisation of power purchase agreement.

ii) The project fulfills requirements of guidelines under Mega Power Project Policy of Govt. of India and M/s. NHPC Limited has requested Ministry of Power (MoP) vide their letter dated 22 .01.2010 to accord Mega Power Project status to this project. In view of this, custom duty, excise duty and State Govt. taxes have not been considered in the cost e;stimates except for excise duty for cement and steel.

iii) M/s NHPC Limited shall incorporate the suggestions/observations on Hydrology, Design Flood, Sedimentation, Dam Design aspects, Hyde! Civil Design, Foundation Engineering & · Seismic Design aspects, Gates design aspects, Instrumentation aspects, Intet-S:tate aspects, CSMRS etc. during the detailed design swge as given in Annex-[V ..

iv) M/s. NHPC Limited shall take up inatter relating to connectivity of the project to the grid with PGCIL as per observations by CEA on Power Evacuation aspects given .in Annex -V

v)

vi)

~i)

M/s NHPC Limited shall complete balance explorations/investigations works by Nov., 2010 before design stage as per schedule given 1n Annex-VI-A and the results of the explorations/investigations be communi'cated from time to time for appraisal. M/s. NHPC Liririted shall submit the monthly.report of investigations conducted to CEA/CWC/GSI reglflarly. Further, the suggestions of GSI furnished as comments from time to time. shall be followed. Cost for changes required subsequent to investigations shailbe absorbed by th~:,com.pany.

The site specific seismic studies shall be expedited and their report shall be put up to the Nationai Committee on Seismic Design Parame,ters for recommendations

· on seismic design parameters for detailed design of different components of the project.

M/s. NHPC Limited shall obtairi clearances of the project from Ministry of Environment & Forest (MoE&F) from Enviro:tnnental and Forest angle. A provision of Rs70.65 crores has been made in the cost estimates of civil works, under the sub-head 'Environment and Ecology' based on draft EIA!EMP report;; which are yet to be approved by MoE&F. . ' .

, Aiii) If any impact on wild life is observed, M/s. NHPC Limited shall obtain cleararice from Indian Board of Wild Life.

ix) Under the cost of civil works, total provision under the.head "Land" has been made as Rs. 99.50 crores.

~) .\s il1e Sclwduk i ribc· dliun is gc'tting ;!lL:ctc?d, clearance lrum fvllnhlr) ,,1 S(JCial Justice & Emp<l\VlTnJc11L Tribal .\ !Ltir:-; ~hal! be obtained b;. ~\Us NllJ'( Limited.

xi) f'vlls NHPC Lirnitc:d shaJI obtain ckararh:c <li. tiL: rroject from security angk fr(li\i the rvtinistrv of Defenc\:

xii) t\11/s NHPC Limited shall comply with the Guidelines for participation of Foreign Companies in tender work packages of Hydroelectric Projects in sensitive areas, issued by Ministry of Power vide No. 711/2002-DO(NHPC)[Vol.II], dated 03.09.09, appenaed at Annex- VII.

xiii) /·-As desired by ewe, M/s. NHPC Limited has fonvarded a copy of DPR to Govt . ~- of West Bengal and Brahmaputra Board. A set of DPR has also been sent by

M/s. NI-IPe Limited to MoP for forwarding the same to Ministry of Water Resources (Mo WR) for their scrutiny and clearance. M/s. NHPe Limited shall take appropriate action as desired by ewe as given in Annex- IV

xiv) In case, changes are made in design parameters during construction due to site conditions or otherwise, the same shall be intimated and got concurred from the Authority before M/s NHPC Limited implements such changes.

xv) M/s. NHPC Limited shall take appropriate precautions to avert flooding of power house by adopting measures listed at Annex-VIII.

xvi) Fly ash and fly ash based products shall be used in the construction of various works to the extent possible in accordance with MoE&F notification dated 14.09.99 and its amendment dated 27.08.2003. The construction material surveys shall include the required investigations for use of fly ash and fly ash based products in various wotks, infrastmcture facilities etc. and their feasibility be ascertained by M/s. NHPC Limited.

xvii) M/s.NHPC Limited shall deploy modem tools/software for construction monitoring of the project by establishing IT based monitoring system and linking the same to CEA network.

xviii) M/s.NHP': Limited shall submit the updated DPR incorporating all the changes/modifications agreed during the appraisal process to the State Govt., Appropriate Electricity Regulatory Commission and Central Transmission Utility. Information in respect of tying up essential inputs/statutory clearanc~s, results of investigations/studies shall be submitted to CEA on receipt of same later from time to time.

xix) · C~_ncurrence is subject to compliance by Mls NHPC Limited of various policies/guidelines etc. issued by Govt. of India from tim,e to time.

5. The broad technical aspects of the project proposal in the project report have been scrutinized in CEA in consultation with CWC, GSI and other cO"ncemed agencies. The scrutiny is based on the data, assessment and certificates presented in the report and infonnat,ion/clarifications received as compliances to the observations on the assumption that the data and information furnished are accurate and have been collected reliably by the project authorities from the dependable sources and/or after carrying out detailed sunreys and investigations as presented in the report.

6. J he• COS[ of the prOJCCl ckarc·d b\ lh<..' \ut!JU!il) I~ incJicalJ\ c' J'h<..' tanfl or t)J 1:

prOJcT! ,kJJI he regulated by the appnlpnate !.kL:tricit: Rc~gulaton ( ·"mmission.

1. Ilk' commissioning schedule Lli' the~ generating unit:; Crom the· cLilc: of CC[/\ clearance :;hall be as follows -

Unit-1

Unit-2

Unit-3

Unit-4

71 Months

72 l\1onths

73 Months

74 Months

8. Monthly Status Report of compliance of the conditions stipulated under para 4 of this ConcmTence letter shall be submitted to Secretary, CEA.

9. Monthly Progress Report of the project shall be submitted to Hydro-Project Monitoring (HPM) Division of CEA. Three (3) copies of the half-yearly reports both on physical progress of the scheme and expenditure actually incurred, duly certified by statutory auditors shall be submitted to the Authority till the Commercial Operation Date of the plant. The project authorities shall give free accessibility to CEA officers and staff to have on the spot assessment of various aspects of the project ·

10. Monthiy status of the project from the date of Concurrence to Financial closure shall be furnished to Secretary, CEA as per the proforma enclosed at Annex-IX.

11. In case the time gap between the Concurrence to the scheme by CEA and the actual start of work by M/s. NHPC Limited is three years or more, a fresh Concurrence of CEA shall be obtained by M/s. NHPC Limited. 12. The Authority reserves the right to revoke this concurrence, if the conditions stipulated in this Office Memorandum are not complied with to the satisfaction of the Authority. ·-- ·

Ends: Annexes I, I-A,I-B, II, III, IV, V,VI, VI-A, VII,VIII & IX. - p, ~JJ7-r?,.

I~ ·S'· I :o (K.P,. SINGH)

SECRE'I'ARY,.CEA .

·.' /Managing Director, Mls. NHPC Limited, NHPC Office Complex, Sector- 33, V ~aridabad-121003 (Haryana).

2. Secret('IJ"y, Ministry -of Power, Govt. of India, Shram Shakti Bhawan, Rafi Marg, New Delhi -110119. ·

3. Secretary, Ministry ofErivironment &- Forest;s, Government oflndia, Paryavaran Bhawan, CGO Complex, Lodhi Road, New Delhi - 110003.

4. Chairman, Central Electricity Regulatory CommissionTore-=-J~-sth-Froor, Scope Complex, 7 Institutional Area, Lodhi Road, New Delhi-11 0003.

)..-(

Ch:;irnun. ( cnu:il

Nnv Delhi- 1] 1161)(1

\\'aL~r ( .. ·!,)Jnrni:-)SIOn. :--:~..:\\"d }_~h~l\\an .. l ) ' .. - ...... ~ i Ul .._!;I;.

I_) l' .!'\...['' •.•

6. Chairperson. Central Fkctricil\ Authoril\. Sewa Bhawan. R K. Pur~;m_

Nev, Delhi.

7. Chairman-cum-Managing Director, Power (]rid COIJ)Oration of India Limited. Saudamini, Plot No 2, Sector 29, Gurgaon- 12200 I (Haryana).

8. Secretary (Power), Government of Sikkim, Kazi Road, Gangtok-73 71 0 I.

9. Secretary (Power), Govt. of West Bengal, Power Deptt., New Secretariat Building, th Floor. Block-A. Kolkatta-700 001.

10. Chairman, Brahamputra Board, Basistha, Guwahati- 781029.

11. Adviser (Energy), Planning Commission, Yojana Bhawan, New Delhi - 110001

12. Member (D&R), Central Water Commission, Sewa Bhawan, R. K. Puram, New Delhi- 110606.

13. Member (WP&P), Central Water Commission, Sewa Bhawan, R.K. Puram, New Delhi - 110606.

14. Member (Hydro I Planning I Thermal I Grid Operation & Distribution I Economic & Commercial I Power System), CEA, Sewa Bhawan, R.K. Puram , New Delhi- 110606.

15.

16.

17.

18.

19.

Joint Secretary (Hydro), Ministry of Power, Shram Shakti Bhawan, Rafi Marg, New Delhi.,.Il0119.

General Manager-II, Sikkim Power Development Corporation Limited, 31- A, National Highway, Gangtok-737101.

Chief Engineer (HPA/ SP&PA/ F&CA/ TCDI Legal! HPM l IRPI HP&I I HE&TD LD&T), CEA, Sewa Bhawan, R.K. Puram,\New Delhi ~ 110606.

Chief Engineer (P AO), CWC, Sewa Bhawan, R.K. Pur~, New Delhi - 110606.

. Director (LHIM&EPE Division), Geological Survey of India, A-II, Pushpa Bhawan, Madangir Road, New Delhi -110062.

----~-----------··-------

S.No.

Tccsta Hydro Electric Project Stage-Pi (4:d30=520 i\'1\V) in Sikkim bv M/s NHPC Limited

I Description I

I t!

Price Level July, 2009 , 1 US $ = Rs.48.57

Foreign component 1 Domestic I Component

Total (Rs. Cr·s.)

I i

I II. l

i Civil works !

f---M-il-lio_n_'l F-~-qu_v ___ I_N_R---1! (Rs. Crs.) /

US$ I (Rs. Crs.) I :-:-:::-~-li---=-----i I I 2349.21 I 2349.21 I I I I

~~1 I -+- --j 2. E&M Works without taxes, I 13.125 63.75 I 494.94 558.69 I

I duties and overheads I I

I Total Hard Cost 13.125 63.75 2844.15 1 2907.90 I I

I .· ..

' I

4. IDC - - 667.97 667.97

5. FC - - 18.87 18.87

Total ProjectCost 13.125 63.75 3530.99 3594.74

~-· ------ TEE~-:-PROJECT, STAGE-IV, (4-;-·'130 f',WJ)------·l It (SIKKIM)

ABSTRACT OF COST CIVIL WORKS

I Price LeveL July 20091

IS.Nol Description Arnount In Crores

A - CIVIL WORKS 1. DIRECT CHARGES

1- WORKS A- Preliminary 21.70 8- Land 99.50 C- Works 543.33 J - Power Plant Civil Works 1182.61 K- Buildings 101.74 I M - Plantation 2.00 0 - Miscellaneous 33.00 P - Maintenance During Construction 19.02 Q- Special Tools and Plants .. -. ~ ···-- 4.93 R - Communication 74.52 X - Environment & Ecology 70.65 Y - Losses on Stock 4.76

TOTAL OF I - WORKS 2157.77

II - Establishment 150.00

Ill -Tools and Plants (1% of 1-Works) 21.58

· IV - Suspense -· 0.00

V - Recei.Pts & Recoveries (-) -3.50 TOTAL DIRECT CHARGES 2325.85

--2. • INDIRECT CHARGES .

I - CC!pitalis.ed Valqe of ab~t~rnent of Land Reven.ue . 1.78 5% of Cost of Culturable Land)

II- Audit & Account Charges (1% of 1-Works) 21.58 TOTAL INDIRECT CHARGES 23.36

TOTAL COST OF CIVIL WORKS 2349.21' - 0. .• ~.

'

(

S.No

I i .1 0

1.1.1

1.1.2

1.1.3

1.1.4

1.1.5 I

1.1.6

1.1.7

1.1.8

1.1.9

1.1.10

1.1.11

1.1.12

1.1.13

1.1.14

1.2

1.2.1

1.2.2

1.2.3

1.2.4

1;3

1.3.1

1.3.2

1.3.3

----1.3 li

Teesta - IV HEP (4-x130MW=520fv1W}

SUMf;;iARY OF COST ESTIMATES FOR ELECTRO-MECHANICAL WORKS

Indian Item Component

I INR(Lakh)

Electromechanical Works I EOT CRANE 707.50

T. G. SETS & BUS DUCT 27700.00

POWER TRANSFORMERS 3445.00

AC SUPPLY SYSTEM 236.80

400 KV POTHEADYARD 146.50

POWER AND CONTROL CABLES & XLPE CABLE

500.00

CONTROL SYSTEM AND SCADA 1300.00

ELECTRICAL AUXILIARIES 1165.00

MECHANICAL AUXILIARIES 1295.00 ....

PRELIMINARY 100.00

. INITIAL SPARES {JNR) 1596.83

INITIAL SPARES (FC)

.FREIGHT AND INSURANCE .. 285S:2·9

ERECTION AND COMMISSIONlNG 3417.33

T<>tat 44469.25

)·~xes and Duties

C::Ustom Duty 0.00

Excise Duty 0.00.

CST 761.85

Service Tax .. 351.98

. TOTAL (TAXES & DUTIES) 1113.83

Overheads

Establishment 3000.00

Audit & Account 138.45

Tools and Plants 257.53

I r .... ntjageACies --- -~~~·

Total( Overheads) 3911.04

I Foreign Component

1 US$(Million) ,

9.80

3.008

0.317

13.125

!

Price Level July-2009

1 US$= Rs 48 57 I

Equivalent Total INR(Lakh) I INR (Lakh)

I I I

707.50

27700 00

3445.00

236.80

4759.86 4906.36

1460.99 1960.99

1300.00

1165.00

1295.00

100.00

1596.83

153.97 153.97

2859.29

3417.33

6374,81 50844.06

0.00 r

0.00 <,

761;85

35.1.98

1113.83

3000.00

138.45

257.53

-0:J{3.,Q€l----.

3911.04

Total cost of E&M Works .in Lakh Rs. 49494.12 13.125 6374.81 55868.93

Teesta IV H.E Project (4 x 130=520 MW) by M/s NHPC in Sikkim

Tentative Financial Package · ,.

Debt Equity Ratio= 70:30

Source of Financing Total

(Rs. Crs)

Equity Promoter 1078.42 (NHPC)

Debt 2516,32 Rupee Term Loan

-Total

' Egui!Y +Debt 3594.74

T-erms of Loan

$1. Item

No. _,

1 Source of debt IF Is

.

~--· 2

Loan amount (Rs 2516.32 Crores)

--

i ---' ·:.!

3 IDterest·rate .. 11.00% ... ·_ .

f .. .. ..

'.

' ; 4 Financing Charges 0.75%

_(of Deb!)_

To

F. No" 8·65/2011-FC Government of Iodia

Ministry of Envlronmcnf & Forests (FC Division)

''''""-"-...,

Paryavaran Bhawan C G 0 Complex, Lodhi Road'

New Delhi- ll 0510: Dated: 26th Febmary 2013.

The Principal Secretary (Fores1s), Government of Sikkim, Gangtok.

Sub: Diversion of 143.4928 ba offorest land for construction of S20 MW Teesta Stage IV hydro electric project in North Distt of Sikkim by NHI'C.

Sir,

I am directed to refer to the State Government of Sikkim's letter No. 1259/FCA/FEWMD/112-15 dated 3'd May 2011, where-under a proposal seeking prior approval of the Central Government, in accordance with Section-2 of the Forest (Conservation} Act, I 980, for diversion of I 43.4928 ha of forest land for construction of 520 MW Teesta Stage IV ~ydro electric project in North Distt ofSikkirn by NHPC :was submitted to this Ministry, and to say thatthe said proposal has been examined oy the Forest Advisory Committee constituted by the Central Government Wlder Section-3 of the afores<Ud Act.

2. After careful consideration of the proposal of the State Government and on the basis of the recommendations ofthe Forest Advisory Committee, the Central Government hereby accords stage-l approval of the Central Government Wlder the Forest (Conservation) Act; 1980 for diversion of 143.4928 ha of forest land for construction of520 MW Teesta Stag~ IV hydro electric project in North Distt of Sikkim by NHPC subject to the fulfillment of the following conditions:

(i) Legal status of the diverted forest land shall remain unchanged;

(ii)

(iii)

Compensatory afforestation over the degraded forest land doublein extent to the forest land being divened shall be .raised and maintained by the State Forest Departm¢nt at the cost of the User Agency;

Th~ land identified for the pulJlOSe of C4 shall be clearly depicted on a Survey of India toposheet of 1:50,000 scale.

· (iv) The User· Agency shall transfer the cost of raising ·and mainta~ning the ~mpensatory .afforeStation, at the c~ent wage rate, to the State Forest Department. The scheme may include appr<)priate provision for anticipated cost increase for works scheduled for subsequent years;

(v) The State Government shall charge th~ Net Present Value (NPV) of the forest land beip.g·diverted Wlder this proposal from the User Agency as per the orders of the Hon'ble Supreme Court of India dated 28.03.2008, 24.04.2008 and 09.05:2008 in Writ Petition (Civil} No_ 202/1995 and the guidelines issued by this Ministry vide its Jetter No. 5-3/2007-FC d.ated 05.02.2009 in this regard;

(vi) At the time of. payment of the Net Present Value (NPV) at the then prevailing rate, the User Agency shall furnish an undertaking to pay the additional amount

(vii)

(Viii)

(ix)

(x)

(xi)

(xii)

(xiii)

(xiv)

of NPV, if so d~t~mlincd, a> per the final decision of the Hon 'hie Sup rex 11 <;:.~ Cow1 of India;

All the funds received from the user agency under the project, except the funds realized for regeneration/ demarcation of safety zone, shall be t.ra.nsferred to. Ad~ hoc CAMPA in the Saving Bank Aceotmt pertaining to the State concemcd ~

The User Agency shall obtain the Environment Clearance as per the provisions of the Environmental (Protection) Act, 1986, if required;

No labour camp shall be established on the forest land;

The User Agency shall provide fuels preferably alternate fuels to the labour~rs and the staff working at the site so as to avoid any damage ~nd pressure on the nearby forest areas;

The boundary of toe diverted forest land, mining lease and safety zoue, as applicable, shall be demarcated on ground at the project cost, by erec~jng four feet high reinforced cement concrete pillars, each inscribed with. its serial number, forward and back beiuing ~mrl rlistance from pillar to pillar~

1l1e layout plan of the proposal shall not be changed. without· the prior aJiproval of the Central Government ·

The forest land shall not be used for .any purpose other than tiUlt specified in the proposal;

The forest land proposed to be diverted shall under' no circumstances be transferred to any other agency, department or person without prior approval of the Central Government;

(xv) No damage to the flora and fauna of the adjoining area shall be-caused;

(xvij Any tree felling shall be done only when it is unavoidable ~d that too under

(xvii)

(xviii)

(x.ix:)

(xx)

(xxi) ·

(xxii)

strict supervision of the State Forest Department · · - .

The State Government shall complete settlement of righf$.,. in t.enns of the Scheduled Tribes and. Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, if any, on the forest land to be di~' and submit the

. documentary ~vidence as. presc;:ribed by this Ministry 1n itsje!ter No. 11-9/1998-FC (pt.) dated' 03.08.2009, in supporttliere<>fi

The. entire re8ervojr created due. tO' submergence· shall· be ootHied by the State GOvernment as RF under Section•4 or PF under Section-.29 of the .Indian Forest

· ACt~ 1927 or under the relev110t Section(s) of the IoeaH?o~:est Act. However, regulated fishing shall be allowed.

- . . . 'Felling. of trees on the forest lan<f being diverted shall be reduced to the bare QJinimum a~d the trees shall be felled under strict supervision of ·the State Forest Department; ·

The l1Ser agency shall undertalce afforestation along the periphery of the reservoir and canals (as applieable). ·

A Catchnient area treatment plan shall be prepared, and implemented by/or under the supervision of State Forest D~partment at the project coSt;.

The user agency shall carry out muck disposal at pre-designated sites in such a manner so as to avoid its rolling down: ...

5k---

(xxiii)

(xxiv)

(xxv)

(xxvi)

(xxvii)

(xxvm)

(xxix)

(xxx)

(xxxi)

(xxxii)

The dumping area for muck disposal shall be stabilized and reclain1ed by planting suitable species by the use{ agency at the cost of project under the supervision of State Forest Department Retaining walls and ten·acing shall be carried out to hold the dumping material in place. Stabilization and reclarnation of such dumpine site.~ shall be completed before handing over the same to the State forest Department in a time bound mal1llcr as per Pl<ln.

Tht: User agency shall consult organization(s) having experience in construction of roads in hilly areas to avoid frequent road blockade due to landslides etc and shall provide breast walls and retaining walls wherever necessary.

The State Ciovenunent and the user agency shall ensure that the tress available between full reservoir level (FRL) and FRL--4 meters are not felled;

The user agency shall provide free water for the forestry related r,rojects;

Other standard conditions as applicable to proposals relating to Hydro Electric Projects will be applicable in this case also.

The user agency shall submit the annual self compliance report in wspect of the above conditions to the State Government and to the concerned Regional Office of the Ministry regularly.

The user agency shall obtain clearance from Standing Conunittee of the N a tiona! Board for Wildlife before grant of Stage II approvaL

The State Government shrul take up greening of the hillocks in the catchment of tile project as part of CAT Pl.an.

The user agency shall re-examine the Biodiversity Management Plan prepared as part . of Envirorunental Man<J.gement Plan and ensure the establishment of a botanical garden, a butterfly park and corrunission a project for ex-situ conservation of the orchids and other endemic and native species including earmarking and developing some suimble area for this purpose.

The State Government shall examine the possibility and suitability of bringing in more ·forest areas in protected area netWork in accordance with the recommendations of the Carrying Capacity Study and communicate the outcome to MoEF. ·

(xxxiii) The State Government shall institute a research project to be undertaken by Institutes/Experts of repute to assess the occurrence of the Himalay~ newt (Tylototriton verrucosus), a Schedule I animal whose status-is unknown as noted in th<i ·carrying Capacity Stp.dy and report the institution of the project to the MinistrY. The project will be funded by the user agency. ·

(xxxiv) The forest land included in the colony area shall not be used for any activity other than soil and moisture conservation related structilres!interventions.

(xxxv) Any other condition that the concerned Regional Office of this Ministry may stipulate, from time to time, in the interest of conservation, protection and

. development of forests & wildlife; and

(xxxvi) The User Agency and the State Government shall ensure compliance to provisions of the all Acts, Rules, Regulations and Guidelines, for the time being in force, as applicable to the project.

l. /\1\.u '''"''i't <II .1 ''·I"., i \Ill , ""'Jdi:IJI<C (<> the conditions s::pul:dcd 111 l';,r:~g,f·aph above, from t!v· '-\!:11c ( ;,,\,·llllll<'lli, lirulhtagc.-11 approval of the Ccnti·al Covcn.Hl.lem, j 11

accordance with ''~'tio11 1 <tl lit,· I ,,r,·.·:t (< 'oJL';crvation) Act, 1980, \>..•ill bL~ consiclr:rcd by thic.; iv1inistry. Till H~ttipt olth·· :.:1id 1111al/ c:tagr:-11 approval of the Central Government frorn thJs Ministly, transiCr of the said f(JJc>l lalld to the user agency shall not be affected by the State

Gov.enunent.

Yours faithftllly,

~ (Shiv Pal Singh)

Sr. Assistant Inspector General of Forests

Copy to:-

I. The Principal Chief Conservator of Forests, Govt. of S ikkim; Gangtok. 2. The Chief Conservator of Forests (Cet1tral), Regional Office, Shill one, 3;Jf:e Nodal Officer (FCA), 0/o the PCCF, Govt. of Sikk.jm, Gangtok. ~. us·er Agency with request to supply information noted in para 3 above.

5. Monitoring Cell of FC Section. 6. Guard File ·

~l.{s (Shiv Pal Singh)~

Sr. Assistant Inspector General ofF orests

' :·.;' • J ·"\

To

No. J-12011/67/2008-IA-1 rv1inistry of Environmenf 8, Forests

GovPrnnwnt nf lnrli<1 (IA-1 Division)

Paryavan Bhavan CGO Complex, Lodi Road

New Delhi - 110 003

Date: 9th January, 2014

The Executive Director (Planning) NHPC Ltd., NHPC Office Complex, Sector -33, Faridabad -121003 (Haryana)

Subject: Teesta-IV HEP (520 MW) project in North Sikkim District of Sikkim by M/s. NHPC ltd- for Environmental Clearance - regarding.

Sir,

This has reference to your letter no. NH/PD/Env.136/1387 dated 11.5. 12 and subsequent letters dated 18.10.2012, 26.10.2012, 11.1.2013, 21.1.2013 and 11.2.2013 on the above mentioned subject.

2. It is noted that the project is proposed on the Teesta River near Chandey village on left bank and near Hee Gyathang village on the right bank in North District of Sikkim. The project envisages construction of a 65 m. high concrete gravity dam across Teesta River in down-stream of confluence of Runchu with Teesta for the generation of 520 MW hydr()power. This is a run~of-river scheme project. The total land requirement is about 324 ha. Out of .which 143.49 ha is Government/ Forest Land (including 31.5 ha rive~ bed and 14.40 ha· for underground works) and 180.58 ha. is private land. Total submergence area is 105.37 ha. (Government/forest land­.68.82 ha + private land- 36.55 ha); The total catchment area of the project is 3910 Sq.km. An Underground powerhouse is proposed near Phedang village on right bank of river with 4 units of 130 MW each. A total of 256 families are likely to be affected due to the project. There is no displacement due to the project. The project falls within 10 km of Kancnendzonga National Park (KNP) and Fambong Lho Wildlife Sanctuary (FLWS). The total cost of the project is Rs. 3594.74 Crores and the project will be completed in 7 4 months .

. 3. The project was considered by the Expert Appraisal Committee (EAC) for River-Valley&. Hydroelectric Projects in its meetings held on .7-81h September 2012, 23·241h November 2012 and 1-2nd February 2013. The Public Hearing was conducted on 29.3.2012 at Namprikdang Mela Ground in Dzongu area of North Sikkim District.

1

4. The Cxpert Appraisal Committee (EAC), after due consideration of the relevant documents subrnitted by the project proponent and clarifications furnished in response to its observations, have recommended for grant of Environmental Clearance for the project mentioned above. Accordingly, the h .. 1inistrv of Environment and Forests hereby accords necessary Environmental Clearanc'e for the above project as per the provisions of Environmental Impact Assessment Notification, 2005 and its amendment in 2009, subject to compliance of the following conditions:

Part A: Specific Conditions

(i) T{le Catchment Area Treatment (CAT) plan, as proposed in EIA/EMP Report shall be undertaken in consultation with State Forest Department and maior works shall be completed before impounding of reservoir. The year-wise det~ils of CAT plan is as follqws:

Treatment Measures I I I II l lll.l'VJ V VI ) Total j J Year 1 Year I Year Yea~ear Year I

13iolo_g_ical Measures : Afforf?station (ha) I 110 157 105 l 108 l 58 9.5 547.5

Assisted Natural ···~·····9a ·ao~ 80 I 80 l 40 5 375 . Regeneration{ha)

Pasture Development 70 I

60 80 70 1 20 1

4 i 304 .Jha) ' NTFP RegenerationJhal 70 69.7 I 55 50 l 30 J 5 . 279.7 ·.· Nursery (Creation & · 2 1 1 1 - - 5

maintenance) l . l:ngineering Measures

Sausage Wall (Cum) 2550 2050 1550 1550 1600 1150 1045 0

CCM Wall (Cum) 2230 1420. 1020 1020 1020 740 7450 Catch water Drain (RrhO .. 1250 1050 .490· 362 140 140. 3432 DIY Stone Wall (Cum) 2100 1900 .1600 1080 1080 842 8602 Brushwood check dams 90 50 20 20 20 5 205

. (Nos) · DRSM 200 181.5 100 100 50 10 641.5 ·. check dams (Cum) .. ~ Contour Bun<Jil]gjhf!l 20 20r 20 20 20: 20 120 , Bench 20 20 20. 20 20 20 120 . Terracing (h~ ..::...

(ii) The details of land holding of the projeCt affected persons whose land ·is being ·. ·acquired shaH be submitted to this Ministry including Regional Office. The R&R

benefits for the land losing households will be as per the National Rehabilitation and Resettlement Policy, 2007 (NRRP-2007) or as per the State Rehabilitation

· and Resettlement Policy, whichever is more beneficial to project affected ·, ·persons (PAFs). Adequate publicity of the compensation package of NRRP

2007 shall be given in the affected villages.

(iii) A Monitoring Committee for R&R shall be constituted which must include representatives of project affected persons including from SC/ST category and a woman beneficiary. ·

2

.l

. ( .. ·

i ,.

! .

(iv) All the commitment made during the public hearing shall be fulfillerl cornpietf~i)l by the developer.

(v) Dumping and consolidation/compilation of the muck shall be carried out oniy in the designated muck dumping sites as submitted in the EIA/EMP report As per the proposed muck disposal plan given in your EIA/EMP, out of the 37 _5 Jakh m 3 of muck to· be generated 14.5 lakh m3 will be utilized for construction purpose and remaining 23 lakh m3 will be dumped at 4 designated disposal sites in an allocated area of 32.03 ha. Allocated grant of Rs.707.41 lakhs shall be fully utilized and not to be diverted for any other purpose

{vi)· A minimum environmental flow of 15·cumec shall be released during lean and non-lean/non-monsoon months of the year. For the monsoon months (June­September), environmental flow of 20 cumec shall be released for sustenance of the aquatic life in the downstream. Continuous monitoring system for the flow measurement shall be installed an'd data be displayed at appropriate site for civil society and stake· holders. Six monthly results shall be submitted to the Regional Office of the Ministry and SPCB.

(viii) To enhance the environ!Ticnt of project site, greenbelt, as proposed in the EINEMP Report, shall .be developed. The proposed greenbelt along the periphery of reserifoir shall· be undertaken on approximately 20 ha of blank patches within 100 m width of FRL. The same shall be strictly adhered and the

: allocated budget of Rs.96.50 lakhs shall be fully utilized and not to be diverted to any other purpose.

(ix) The Biodiversity Conservation and Wildlife Management Plan shall be taken-up as outlined in the EMP and as submitted vide letter no. NH/ PO/ Env. 136/2953

. pated 18.10.2012 and implemented in consultation with the State Forest Department without any diversion of funds. The allocated budget of Rs.526.50

. .'lakhs for this purpose shall be fully utilized and not to be diverted for any other 'purpose. A report of· impfementation shall be included in the six monthly progress and compliance report to be submitted to the Ministry including its

. Regional Office .

(xL Equipment likely to generate high noise levels shall meet the ambient noise standards as notifi~ under the Noise Pollution (Regulation and Control) Rules,

. 20001 as amended in 201'0 under the Envi~onment ~rotection Act (EPA), 1986. · For this necessary insulation arrangements .etc. to be ensured.

.. ,(xi) A separate provision. under R&R Plan fqr bearing full expenses. including tuition fees of at least 2 students .of the project affected family (PAF) is selected on

.. · merit in a Government Engineering/Me~ii~l college. The maximum scholarship . shall be limit to 2 students every year for five years. An additional provision of . Hs.25 lakhs alloca~ed for this purpose shall be fully utilized and not to be

diverted for any other purpose. ·

(Xii) The water supply connection ·should be made available in each house in the project affected area based on their requirement in the Commuhity and Social Development Plan. ·

~ 3

(xiii) The project proponent shall ensure construction of 8 sets of good quality of community toilets and their maintenance. An allocated grant of Rs.30 lakhs shall be fully utilized for the purpose and not be diverted for any other purpose

(xiv) In addition to the solid waste management in the projectcolony, the proponent should also contribute towards solid waste management plan in the project affected area. An allocated provision of Rs. 25 lakhs for this purpose shall be fully utilized and not to be diverted for any other purpose.

(xv) The project proponent shall take-up fuel & energy conservation measures in the project affected area. For this, the project proponent shall ensure installation of solar street lights in the project affected area with a grant of Rs.20 lakhs for this purpose. Allocated provision shall be fully utilized for the same purpose and not be diverted for any other purpose.

Part 8: General Conditions

(i) Adequate arrangements for providing free fuel like kerosene/wood/LPG shall be made at tl1e project cost for the labour engaged in the construction work so that indiscriminate felling of trees is prevented.

Medical facilities as welt as recreational facilities shall also be provided to the labourers.

{iii) The labourers to be engaged for construction works shall be thoroughly examined by health personnel and adequately treated before issuing them work permit.

(iv) Water sprinkling arrangements shall be made to suppress the fugitive emissions.

(v) Potable drinking water and proper sanitary facilities shall be provided for the labour force.

(vi) Restoration of construction area including dumping sites of excavated materials shall be ensured by leveling, filing up of borrow pits, landscaping etc. The area should be properly treated with suitable plantation.

(vii) Environmental parameters shall be_ monitored and six monthly monitoring reports shall be submitted to the concerned Regional Office of the Ministry and to Ministry of Environment and Forests, New Delhi for their review.

(viii) Disaster Management Plan shall be prepared in consultation with the District Authorities and early warning telemetric system shall be installed.

(ix) A Multi-Disciplinary Committee (MDC) to monitor environmental safeguards during the construction phase shall be constituted by the project proponent in consultation with the Ministry as early as possible. The proponent shall suggest the members and their profile for approval of the Ministry. The project proponent shall organize annual meetings of the committee and submit the monitoring report to the Ministry.

~ 4

(vii) As proposed in the EMP, a Environment Management Cell (l::.lv1C) shall be established at the project level with sufficient manpower. The head of the EMC shall report directly to the head of the Project for speedy implementation of Elv1P & related issues.

5. The Project Proponent shall provide full cooperation and all required documents J data to the Officials from concerned Regional Office of the Ministry who would be monitoring the impfementation of environmental safeguards.

,.

6. The responsibility of implementation of environmental safeguards rests fully with th.e M/s. NHPC Ltd and Government of Sikkim.

7. Besides the above stated conditions, the Project Proponent shall also implement all other environmental safeguards, as proposed in the EIAIEMP report and other reports from time to time. The Government of Sikkim may also like to monitor implementation, of EMP at regular intervals.

8. The Environmental Management Plan (EMP) shall be strictly adhered to and a sum of Rs. 84.76 Crores, the budgetary provisions .for implementation of EMP shall be fully utiliz.eu and not to be diverted for any other purpose. In case of revision of the project cost due to price level change, the cost of l::MP shall e:dl:;o be updated proportionately.

9. In case of change in the scope of the project, the same shall be intimated to the Ministry and fresh approval, if required, shall be taken from the Ministry.

1 o~ The Ministry reserves the right to add additional safeguard measures subsequently, if found necessary and to take action including revoking of the clearance under the provisions of the Environment (Protection) Act, 1986, to ensure effective implementation of the suggested safeguard measures in a time-bound and satisfactory manner.

11. This clearance letter is valid for a period of 10 years .from the date of issue of this letter for commencement of construction work. ·

12. The Kanchendzonga National Park· & Fambong Lho Wildlife Sanctuary are within 10 Km ofthe project site. Clear~nce from tne Standing Committee of NBWL shall have to be obtained as per Supreme Couit Order. The; EC would become

. operational only after obtaining approva:l from Standing Committee of NBWL. Construction activity associated With the' project can :commence only after Wild Life and Forest clearance is obtained. ·

13.. A copy of the clearance letter shall be marked to concern~d PanchayaVZilla Parishad/Municipal Corporatipn; Urban local body and local NGO, if any, from whom any suggestion/representations were received while _processing the proposal. The clearance letter shall also be put ·on website by the. project proponent.

14. State Pollution Control Board I Committee shall display a copy of the clearance letterat-the-R-egienal--Office, District Industries Centre and Collector's I Tehsildar's Officefor30days. · · -----·--- __ _

5

15 The project proponent should advertise at least in tvvo local newspapers wideiv circulated in the region around the project, one of which shall be in vernacula-r language of the locality concerned informing that the proJect has been accorded environmental clearance and copies of clearance letters are available with the State Pollution Control Board I Committee and may also be seen at Website of the Ministry of Environment and Forests at http://wvvw.moef.nic.in.

16. After 5 years of the commissioning of the Project, a study shall be undertaken regarding impact of the project on the environment and downstream ecology The study shall be undertaken by an independent agency, decided in consultation with the Ministry.

17. The project proponent shall also submit six monthly reports on the status of compliance of stipulated EC conditions including the results of monitored data (both in hard copies as well as by email) including the respective Regional Office of MOEF and Zonal Office of CPCB and SPCB.

· 18. Any appeal against this environmental clearance shall lie with the National Green Tribunal, if preferred, within a period of 30 days from the date of issue, as prescribed under Section-1 0 of the National Green Tribunal Act, 2010.

Copy to:

Yours faithfully,

~ (B. B. Barman)

Director

1. Secretary, Ministry of Power, Shram Shakti Bhawan, Rafi Marg, New Delhi -1. 2. The Advisor (Power), Planning Commission, Yojna Bhawan, New Delhi -1. 3. The Secretary (Power & Energy), Government of Sikkim, Gangtok-737101 . 4. The Principal Secretary (Forests); Forest, Env. & Wildlife Management Deptt.,

Government of Sikkim, Gangtok-737 101 5. The Chief Engineer, Project Appraisal Directorate, Central Electricity Authority,

Sewa Bhawan, R. K. Puram, New Delhi -110 066. · 6. The AdditJonal PCCF, Regional· Office (NEZ), Ministry/ of Environment &

Forests, Law-U-Sib, Lumbatngen, Near MTC Workshop, Shillong- 793 021, Meghalaya. ·

7. The Member Secretary, State Pollution Control Board, Govt. of Sikkim, Annexe Building, Forest Secretariat, Gangtok~737 101, Sikkim

8. EI-Division, Ministry of Environment &Forests, New Delhi -110003. 9. PS to JS(AT)/Director(BB)/PVS Rao(SC-B) 10. NIC Cell~ MOEF- to kindly upload soft copy in MOEF Website. ,......_~/ 11. Guard File. b~ \l • _

6

(8. B. Barman} Director

AGREEMENT

AGREEMENT BETWEEN GOVERNMENT OF SIKKIM AND NATIONAL HYDRO ELECTRIC POWER CORPORATION LTD. (A GOVERNMENT OF INDIA ENTERPRISE) FOR THE DEVELOPMENT OF 495 MEGA WATT (MW) TEEST A STAGE -IV HYDRO FLECTRIC POWER PROJECT IN THE STATE OF SIKKIM.

This AGREEMENT is executed and entered on this 151.(First) day of the month of March in the Year 2006(Two Thousand Six) between the Governor of Sikkim through Principal Chief Engineer-cum-Secretary, Energy & Power Department Government of Sikkim having its office at Power Secretariat, Sonam Tshering Road, Gangtok ~737101 (hereinafter referred to as "Government" which expression shall unless excluded by or repugnant to the context or meaning thereof, shall include its successor(s), administrator(s) or permitted assignee(s) of the FIRST PART:

AND

THE NATIONAL HYDRO ELECTRIC POWER CORPORATION LTD. (A Government of India Enterprise) a company incorporated under the <;;ompanies Act, 1956, and also a Generating Company within the meaning of Sectio.n-2 (28) of the Electricity Supply Act, 2003 having its registered office at NHPc· Office Complex, Sector - 33, Faridabad-121003 (Haryana) through its Chairman and Managing Director, National Hydro Electric Power Corporation Limited (here-in-after referred to as the "Corporation" which expression shall Uf)less excluded by. or repugnant to the context or meaning thereof, shall include its successor(s), administrator(s) or permitted assignee(s) of the SECOND PART:

WHEREAS THE GOVERNMENT OF SIKKIM INTENDS TO DEVELOP 495 Mega Watt (M~) TEESTA STAGE - IV HYDRO POWER PROJECT IN NORTH DISTRICT OF THE STATE OF SIKKIM FOR GENERATION AND SUPPLY OF ELECTRIC POWER (HEREINAFTER CALLED THE PROJECT);

AND WHREAS THE CORPORATION AFTER ADDI"fiONAL DETAILED SURVEY AND INVESTIGATION, EXPLORATION, SHALL PREPARE FEASIBILITY REPORT OF THE PROJECT AND SHALL PROCEED TO PREPARE DETAILED PROJECT REPORT (DPR) I MODIFY THE DPR PREPARED BY CENTRAL WATER COMMISSION (CWC) DULY SAFEGUARDING THE NAMPRIKDANG MELA GROUND AND TAKE UP IMPLEMENTATION OF THE PROJECT AFTER THE COMMERCIAL AND ECONOMIC VIABILITY OF THE PROJECT ·1s

ESTABLISHED; . \:,~

t{;,{fiJ(_~ ~

AND WHEREAS THE CORPORATION Hfl.S THE CAPABILITY FOR SURVEY AND INVESTIGATION, PREPARATION OF DETAILED PROJECT REPORT HEREIN AFTER REFERRED AS DPR, EXECUTION, OPERATION AND MAINTENANCE OF HYDRO POWER PROJECTS OF ALL TYPES AND SIZES;

AND WHEREAS AFTER HAVING SATISFIED WITH THE ABILITY OF THE CORPORATION, THE GOVERNMENT OF SIKKIM HAS AGREED TO ENTRUST THE PROJECT TO THE CORPORATION UNDER THE ARRANGEMENT OF BUILD, OWN, OPERATE AND MAINTAIN (BOOM);

AND WHEREAS THE CORPORATION SHALL IMPLEMENT THE PROJECT AT ITS OWN COST WITHIN STIPULATED PERIOD FROM THE DATE OF SANCTION OF GOVERNMENT OF INDIA AND SHALL ACCORD THE TOP PRIORITY TO THE PROJECT.

NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE PREMISES AND MUTUAL COVENANTS SET FORTH HEREIN AND FOR GOOD AND VALUABLE CONSiDERATION THE PARTIES HERETO HEREBY AGREE AS FOLLOWS:-

1. In this Agreement, the following expressions shall, u.nless excluded by or · repugnant to the context, have the following meanings, namely:-

(a) "Department" means the Energy and Power Department, Government of Sikkim;

(b) "Execution" means all activities from conceptualization of the Scheme to completion of construction work as being understood in the trade;

(c) "Commissioning" means upon execution, installation of total capacity as approved in the Techno Economic Clearance (TEC) and start of generation;

(d) "Implementation" means all act or processes including any study and investigation work; execution and commissioning and power evacuation of Teesta stage-:- IV 495 Mega Watt (MW) Hydro power Project;

(e) "Stipulated Energy" means the quantum of ·eriergy calculated to be generated month-wise in a financial year based on 90% dependable year of discharge as considered at the time of Techno Economic Clearance;

(f) "Power Execution" means carrying the power and/or arrangement to carry power· from the generating station through approved and reliable modes and means and which includes transmission. and wheeling;

(g) "Power Sale" means selling of power and arrangement of selling power for a price to any person, organization and body corporate that includes Power Grid Corporation of India ltd., Power Trading Corporation, any State Government, Government of India, State Electricity Board, Industries, Trading Companies and even Consumers as mentioned in the Policy on hydro Power Development of August 1998 Issued by Government of India;

(h) "Techno Economic Clearance" (TEC) means the Techno Economic Clearance issued by the Statutory Authorities, Central Electricity Authorities (CEA) of Government of India;

')

I I

.

·.:

J.

GENERAL:

1. The Corporation shall arrange all the necessary finances for the implementation of the Projects.

2. The Corporation shall ensure that the project works are executed at the completion cost approved by the Competent Authority and in accordance with Detailed Project Report and prudent utility practices. ·

3. The expenditure incurred by the Energy and Power Department, Government of Sikkim .as per the audited· accounts, on the investigations, preparation of Detailed Project Report (DPR) and approved thereof, pre-construction activities and other infrastructural works, etc. of the project shall be reimbursed by the Corporation to the Government after twelve (12) months of the sanction of the project without interest. The expenditure would be included in the cost estimate of the project.

4.

5.

6.

The Corporation shall complete the remaining Survey and Investigation, prepare the bankable Detailed Project Report (DPR) I modify the DPR prepared by Central Water Commission (CWC) d4ly safeguarding the Namprikdang Meta Ground, whe.rever require~, obtain requisite clearances from Competent Authorities and imple~T,~ent the "Project" in all respect While preparing I modifying the DPR and during execution of the Project, National Hydroelectric Power Corporation Limited (NHPC) shall safeguard the Namprikdang Mela Ground. In view of this, installed capacity of the 'Project' may come down. The Agreement in respect of ~e proposed 495 Mega Watt (MW) Teesta stage - IV Hydro Electric Project shall stand amended accordingly once the DPR is finalized.

If any of the work such as survey and investigation for preparation of feasibility report, preparation of Detailed Project Report (DPR), planning for infrastructure, acquisition of land etc of the projects do not start within twelve months from the date of signing of this Agreement, then the Government shall have a right to terminate this Agreement on serving 30 (thirty) days notice to the Corporation. However, the Government shall ensure to provide full support to the Corporation for this purpose. ·

• 0

Nothing shall prevent the. Government from sur\leyirig, investigation, and execution of any projects upstream or downstream. However, the same shall not in any manner adversely affect the works of the 'project' under this Agreement. The Corporation shall be informed before embarking on such Schemes.

ASSOCIATED TRANSMISSION SYSTEM

7. The Power Grid .Corporation of India ltd. (PGCIL) shall arrange to provide a suitable integrated transmission system matching with the commissioning of the Project forth~ evacuation of power from this project. This shall be done in .consultation with the Central Electricity Authority, National Hydroelectric Power Corporation Ltd., Energy and Power Department and Government of Sikkim and Ministry of Power (Government of India).

PERSONNEL

S(i) 25% of the total posts in the Executive Cadre in the technical as well as the non technical discipline and Junior Engineer shall be filled subject to their

;•b:·,o:ep~m=sis from the State Govemm~artmen: ~~ 7

3 Agreement For Teesta - IV, HEP

/ I

I' Sikkim during the construction stage.-

(ii) Recruitment of able local persons in Class Ill and IV during construction stage and thereafter during Operation and Maintenance (O&M) shall be made in phased manner against the requirement of the project only upto 50% (Fifty) percent of the sanctioned strength through local Employment Exchange and balance 50% (Fifty) percent manpower shall be deployed from the surplus manpower available in the Corporation. Till Employment Exchange is created in Sikkim, this recruitment of Class Ill and IV personnel shall be made through the concerned Department of the Government of Sikkim only.

SUPPLY OF FREE POWER:

9. (i) The free power to be provided to the state shall be as per the policy of the Government of India as applicable from time to time, which presently is 12% of energy generated at bus bar after excluding auxiliary consumption and transformation losses.

(ii) In case the State is not able to utilize the free power, then the Corporation will have no· objection in facilitating its sale to the other States and the Governme11t of Sikkim getting the sale proceeds, subject to the approval of the Government of India/Central Electricity Regulatory Commissioning (CERC), if required.

MISCELLANEOUS

10. The corporation shall ensure minimum flow of water immediately downstream of the weir/barrage/dam so as to protect the rights of the local inhabitants for irrigation and drinking water requirements as specified in the Environment _ Clearance issued by the Government of India.

11. The fishing, recreational and navigational rights in the river, water channels, reservoir, Lake etc, shall be vested in the "Government" subject to only such restrictions as may be necessary for the operational requirements and safety of the Projects.

12. Subject to security and operational factors, the 'Corporation' shall permit free use by the Government and the general public, of all service roads, constructed and maintained by it for the Project. Other facilities like hospitals, post offices, schools etc. shall also be made available to the general public as per the policy of the Corporation.

13. Should any existing facilities and/or any easement rights such as irrigation, power, water supply, road, communication system, path etc. be adversely affected on account of execution of the 'Project', remedial measures shall be taken by the Corporation at the cost of the 'Project'. The Corporation shall not interfere with any of the existing. facilities till alternate facility is created.

14. The construction of new roads I widening of roads, strengthening I construction of bridges, etc outside the Project Area, if requested by the Corporation, shall be executed by the Government on payment of cost of work, cost of land and departmental charges @ 9% of the cost of the work. In future, any other construction inside the Project Area may be entrusted to the 'Government' by the 'Corporation' against payment of cost, cost of land and departmental charges as agreed above.

4 Aareement For Teesta- IV HFP

/'

I' 15. The 'Government' shall acquire for the 'Corporation' under the Land Acqu1sition Act, 1894 at the expense of the 'Corporation' such private land Within the State of Sikk1m as may be required by the 'Corporation' for the construction, operation and maintenance of the 'Project'. However, the 'Corporation' shall be at liberty to purchase private land through private negotiations also in accordance with law in force. The ownership of such private lands, either acquired or purchased directly, shall vest with the 'Corporation' subject to the land laws of Sikkim.

16. The 'Government' shall transfer to the 'Corporation' on ownership basis the non forest Government land required for the permanent structures/works and for permanent colonies as is necessary for the construction, operation and maintenance of the 'Project' at such rates as may be determined by the 'Government'.

17. The 'Government' shall also arrange for the short term lease of the Government land required for temporary colonies and temporary structures for the construction of the Project for a period of 10 (Ten) years from the date of occupation in the first instance, which may be renewed by the 'Government' for such period as may be required by the 'Corporation' on such terms, conditions and rate of lease rent qS may be determined by the Government ::mrl Corporation mutually.

18. The 'Government' shall have the option to purchase such buildings as may be constructed by the 'Corporation' and such lands as may be rendered surplus to the requirements of the 'Project' on payment at mutually agreed rates.

19. · It is specifically agreed that the Ownership of the Project shall vest in the Corporation.

20.(i). The 'Corporation' shall pay to the Forest Department of the Government of Sikkim the price of the trees coming in the submergence area as are required to be felled or are damaged in the execution of the Project at prevailing Government rate. The responsibility of felling and removing of the trees shall lie with the 'Government'. It will be governed by the Forest Conservation Act, 1980.

(ii) The 'Corporation' shall give preference in transportation of goods and materials for these project to local people through local Sikkim ~ransportation companies or Government of Sikkim through Sikkim Nationalized Transport (SNT) and thereafter to others if local Sikkim transportation .companies or Sikkim Nationalized Transport are unable to carry out the work.

(iii)

21(i)

The 'Corporation' shall comply with all conditions laid down by the .Government of India, Ministry of Environment and Forest in their environment and forest clearance orders. During the investigation and construction of the· project, surrounding environment shall be protected by the National Hydroelectric Power Corporation Ltd., as per the gUidelines of Ministry of Environment and Forest. ·

Place of tendering of all contracts and works, except the major Contracts for tunneling, dam, powerhouse, surge shaft, Electro-mechanical, Hydro­mechanical and supply of construction materials etc. for these project shall be the project area.

(ii) The 'Corporation' shall submit bar chart of activities and financing plan submitted by it to the Government of India to the Government after signing of

(,:~~ 5 ~) ~·· .~-~ ~;~r Teesta -IV, HEP

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the contracts ·.vith the contractors for entire construction period and submit -lluarterly progress reports to the l::.nergy and Power Departmeni.

22(i) The package of Rehabilitation and Resettlement (R&R) for the proJect affected families formulated by the Government in lien with the National Policy for Resettlement and Rehabilitation and as approved by the Ministry of Environment and Forest I Government of India shall be final and bindif'!g on the 'Corporation' and the 'Government'. The cost of the same together with that of the Catchment Area Treatment Plan as approved by the Ministry of Environment and Forest shall form a part of the cost of the Project.

(ii) All constructions of the 'Corporation' other than the main structures of the 'Project' e.g. housing colonies, schools. dispensaries, etc. must be made conforming to the Government regulations. Other plans and designs must confirm to the local regulations, building laws and such other directions as the Government exercise.

23(i) It shall be the responsibility of the 'Government' to make proper arrangement to maintain general peace, law and order inside and around the Project area for security and safety of properties of the 'Project' and life of. the workers/experts/engineers/officers of the 'Project'. The. security within thfl project area shall be provided by the 'Government' as required by the 'Project'. The cost of the security within the project will be borne by the 'Corporation' and shall form a part of the project cost.

(ii) In order to facilitate the State Government to protect the state's fragile environment, ensure due compliance of the Jaw restricting movement of the persons in restricted areas, the 'Corporation' shall provide to the State Government the detail list of non- Sikkimese workers, be it skilled · or unskilled, serving in the project specifying the nature of their works, their particulars and further shall inform the State Government incase any of the workers leave the service in the project and the names and particulars. of their replacements, if any, as also of the additional workers if appointed. The Corporation shall ensure that all the outside labourers be registered with the · Labour Commissioner's Office and the District Collector/Sub-Division Office, liaise with the State Government in all such matters and shall allow the· district authorities or officers of the Concerned department to make inspection of the Project site, relevant registers, books .etc. for such purpose.

(iii) The project shall also to be subject to the laws of Sikkim and jurisdiction of this Agreement is. the Court of Sikkim.

24. The Corporation shall build I widen existing road interconnecting the Project at the cost of the project for the execution of the project.

25. Various contracts shall be decided on merits with equal opportunities to the local contractors also in order to maintain cost, quality and transparency. Therefore, as per the policy the corporation shall neither debar nor provide protection to any set of contractors as long as they qualify for tendering.

26. During the award of local contracts, priority shall be given to capable local • people so that the local·people get benefits from the project. Preference shall be given to the local for supply of meat, vegetables, milk and grocery items to the project employees.

27. In case any object of ~rcheological importance is found by the Corporation or

6

~ ~ent For Teesta- IV, HEP

l . . I I

( ~

if

28.

by an)r oHicc/employees/contracto: s during the implementation of the Project, H1e Corporation shall arrange to handover the same to the Government free of cost

Provided that in case any precious or semi-precious material/mineral is found/located from the land acquired for or transferred or leased out to the Corporation for the Project, the Corporation shall report the fact to the Government immediately and shall keep that area intact till the final decision is taken by the Government

Any or all correspondences/demands made or notices to be sent or required to be made under this Agreement shall be in writing in English language, signed by the party giving such notice (Claim or demand) and shall be delivered personally or by facsimile transmission coupled with by sending original or by registered mail to other parties at its addresses set forth herein below or at such other addresses as such other party may subsequently notify. All notices shall be deemed given when delivered, which include facsimile as stated.

GOVERNMENT:c

CORPORATION:-

Principal Chief Engineer cum Secretary Energy and Power Department Government of Sikkim Gangtok, Sikkim -737101 Tel. No: 03592-202244/202284 Fax No: 03592-202927 I 202284

Chairman cum Managing Director National Hydroelectric Power Corporation Ltd. NHPC Office Complex Sector-33 Faridabad- 121 003 ( Haryana) Tel No: 0129 -2275920, 03592 -247267 I 235217 I 247357 I 247358 Fax No:0129 -2277941, 03592-247227 /247216/222212

29. Varjation in the terms and conditions ·of this Agreement can be made with the mutual consent, only in writing, by both the Parties, to be referred as addendum to this Agreement.

30. Should however, either of the parties neglect and default any of its respective obligations under this Agreement, the other parties shall be entitled to cancel/terminate the Agreement without prejudice to its any other right or remedy as may be available to it under the Agreement. ·

31. The parties agree that every dispute, difference of question which may at any time arise between the parties herein out of or in connection with this Agreement or the subject matter thereof, including the validity and interpretation of this Agreement in part or full (hereinafter referred to as "Dispute") shall be settled and resolved in accdrdance with the procedure laid down herein:

Parties shall attempt for a period of 30 (thirty) days after receipt of notice by the other party of the existence of a Dispute to settle such Dispute by mutual discussion. In case the Dispute cannot be resolve by mutual discussion, the Dispute· shall be dealt with as per the provision of settle law I Government of India guidelines

7 Agreement For Teesta- IV, HEP

I failrrrg which it shall be dealt through arbilratiorr urrder t1"1e /vbrtratron and Conciliation Act, 1996

IN WITNESS WHEREOF, THE PARTIES HERETO Hf.WE CAUSED THESE PRESENT TO BE SIGNED, SEALED AND DELIVERED BY THEIR DULy AUTHORISED REPRESENTATIVES ON THE DAY, MONTH AND YEAR FIRST ABOVE WRITTEN IN PRESENCE OF FOLLOWING WITNESSES:-

For and on Behalf of Gov~rnment of Sikkim Through

~\\\ ~~~-/~ .

~Pradhan) Principal Chief Engineer-cum-Secretary, Energy and Power Department, Government of Sikkim, Gangtok, Sikkim - 737101

(First Party)

Witnesses:

1. , B· ~S~)

2.

8

For and on Behalf of National Hydro Electric Power Corporation Ltd.

/l ~~ .-· ~--=---0' ~- ~- - ~'-- - ' (S'J<.~ C~~n ~~nd Managing Director, National Hydro Electric Power Corporation Ltd., NHPC Office Complex, Sector-33, Faridabad- 121003, HARYANA

(Second Party)

Witnesses:

( K..A-t--1 A t- 1( ,+i> o o t<;)

f;:x.:P··..---~.

Agreement For Teesta- IV, HEP

B-LAND S.NO Details of Land/Property Unit Quantity Rate I Amount

~~~--~~~~~

A Govt. Land/ Forest Land 1 Cost of compensatory afforestation

2 Compensation for standing trees

Ha.

Ha.

Ha.

119.5756

263.04

120.00

Rs. In lakhs (July, 09 PL)

0.25

2.50 Total compensation (A) =

65.76

300.00 365.76

B Private Land 1 Cost of Land ( cultivated) Ha. 2 Compensation for standing crops Ha.

(Like Cardamon etc.)

3 Compensation for trees. Ha. 4 Compensation for houses/ huts. No. 5 Compensation for water supply L.S. 6 Compensation for foot path. Km 7 Relocation of Telecommunication L.S.

lines and Power lines.

191.50 191.50

160.00 80

5 00

18.57

2.00

2.50 3.00

6.00

3556.16

383.00

400.00 240.00 100.00 30.00 100.00

8 Lease charge for 20 Ha of land near 326.00 Dam/ Power house for contractor's temporary colony & facilities @ 2Lac per ha per year @5% escalation per year for 7 Years

Total compensation (B) = 5135.16

Total cost of Land acquisition and compensation(A+B) = 5500.92

C Cost of Establishment for land acquisition & compensation @ 6.25%

D Solatium charges for entire amount of private land and properties @ 30%

E Interest charges on amount of award for the period between taking over possession of land and compenstion and date of award @12% of cost of total compensation for 2 years

F Legal charges @1% of total cost

G Labour and material required for No measurement & demarcation of land /Proerties @ 1% of cost of land acquisition

Sub-Total H i) Rehabilitation & Resettlement L.S.

ii) Cost of Establishment @ 6.25%

of item H Sub Total

TOTAL

6.25%

30%

1%

1%

6.25%

343.81

1373.75

308.11

550.09

550.09

3125.85 1245.80

77.86

1323.66 9950.42

Note : No expenditure has been carried out or proposed to be carried out during pre-investment stage.

Updated amount

Apr, 2015 PL

91.52

417.51 509.03

4949.10 533.02

556.68 334.01 139.17 41.75 139.17

453.69

7146.60

7655.62

478.48

1911.84

428.80

765.56

765.56

4350.24 1733.78 108.36

1842.14 13848.00

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Sir,

No.ll (19)/20 1 0/D (Coord) Government of India, Ministry of Defence,

Room No. 216 · B" Wing, Sena Bhavan, New Delhi . l . Dated ll'"\Janurary, 20 ll

To, / \../Shri A.K. Nauriyal,

Chief Engineer-III (Planning) NHPC Limited, Faridabad- 121 003

Snbjed: NOC/Defence CLearance for 520 MW Teesta Hydro Electric Project, Stage -IV in Sikkim by NHPC . Limited.

I am directed to refer to your letter No. NH/PD/PC/Teesta-IV/621, dated 17.03.2010 on the above subject and to say that Ministry of Defence has no objection for construction of 520 MW Teesta HEP (Stage-IV) on fiver Teesta in Sikkim by M/s NHPC Limited subject to the following conditions:

(a) Height of dam and associated structures (Highest point) shall not exceed 44 meters above ground level/ 760 meters above mean sea level.

(b) Standard obstructiQn markings and lightings to be provided by the company. The lights should be switched on •during night and poor v~sibility.

(c), Periodic maintenance of obstruction lightings to be carried out by the company at regular intervals to keep the~ in visible/ serviceable condition. · · ·

(d) The completion of the project shall be intimated to CATCO, HQ, EAC, IAF, Shillong.

(e) The validity ofthis NOC is three years from the date of issue.

----------------------------------------

(f) Required security clearance should be obtained through 1v1llA/ lB ;md the other agenc-ies o C the Co reign Nat ion a \s/ lnd ian representatives to _

be employed by the Cumpany in India

Copy to:

l. 2. 3.

Y our~Jaithf[j:-lly,

li // j /f.,r ...-1.;1,u-"'L.;r .r~--·/'-;r'"" e/ / " . -- fi\ 1 ! 1. \

(S.D.BHASORj 1 r' '

Under Secretary to the Govt. of India Tel No. 2301 2729

JS (Air)- w.r.t. MoD ID No. 3(23)/2010-D (Air-II), dt. 16.12.10. JS (G)- w.r.t. to MoD ID No. 23(2)/2010-D(GS-III), dt.l9.8.10. JS(N)- w.r.t. to MOD lU No. S(5)/2010D0'-J-II/Ops)495, dt. 205.10.

No. 2.1<\19)/201 0-D (Coord) Government of India Ministry of Defence

216, 'B' Wing, Sena Bhavan, New Delhi, the 2.-f-April, 2015.

OFFICE MEMORANDUM

Subject:-:Extension of validity of NOC/Defence Clearance for Teesta-IV HE Project, Sikkirn-regarding -reg.

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No. 2/4/2005-(NHPC) dated 10.09.2014 on the above subject and to say that validity of NOC issued by Ministry of Defen~e vide letter of even number dated 11.01.2011 for construction of Teesta-IV HE Project, Sikkim, by NHPC Ltd. is extended upto 11.01.2017 subject to the terms and conditions mentioned in the Ministry's aforementioned letter dated 11.01.2011.

[\·~~ . j

To, Ministry ofPower

(Rajesh Choudhary) Under Secretary to the Govt. of India

(Kind Attn Shri S. S. Rawat, Under Secretary) Shran1 Shakti·Bhawan, Rafi Marg, New J)~lhi

v Copy to: Executive Director (Planning)_. NHPC Ltd., Sector 33,

Faridabad).

Copy also to:

1. Section Officer(N-II/Ops)- w.r.t. MOD ID No. 5(5)/1 O-D495(Vol.III) dated 5-11-2014 2. , Desk Officer (GS-III)-w.r.t. MOD ID No. 23/1//2015- D (GS-III), dated 31.03.2015 3. Section Officer (Air-II)-w.r.t . MOD ID No. 3(15)/ 2014-D(Air-II), dated 21.11.2014

Government of india I Ministry of Water Rcsourcr;s

(8&8 Wing) ****

5th floor, Mohan S1ngh Place, Baba Kharag Singh Marg, Connaught Place,

New Delhi- 110 001.

Sub: - Teesta Hydro Electric Project (Stage-IV, 4Xi30 MW), District North Sikkim Sikkim. '

Reference is invited to Ministry of Power's letter No.2/4/2005-N H PC dated 07.04.2010 addressed to Commissioner (B&B), MOWR requesting therein necessary clearance of DPR (September-2009) from International angle for taking up Teesta Hydro Electric Project (Stage-IV, 4X130 MW) in North District of Sikkim. This project is being developed by NHPC Limited.

The proposal has been examined in the B&B Wing of the MoWR from international angle. Teesta Hydro Electric Project (Stage-IV, 4X130 MW) is a run of the river scheme on Teesta River, which falls into the Brahmaputra River near Raniganj town in Bangladesh. It envisages utilization of gross head of 165.50 m by construction of a concrete gravity dam with live storage 8.2 MCM at a location near village Chandcy and Hcc-Cythang just downstream of the confluence of Runchu with Teesta and a power station of 520 MW (4X130 MW) located near village Phidong in the North District of Sikkim. The project envisages construction of 65 m high concrete gravity dam with underground power house. The dam would submerge an area of 105.37 ha, out of which 68.82 ha is GovernmenUForest land and 36.55 ha is private land. The reservoir length at FRL i.e EL 755 mare approximately 4.37 km and 644 m along main Teesta River and Tolung Chu river respectively. The distance from tip of the reservoir to nearest international border (Tibet) at the top of the dam contour level i.e EL 760.00 m along the river is 29:5 km as· per the information furnished by the project authority.

The Spillway structure has been modified in order to accommodate revised design flood i.e 13,000 cumecs as conveyed by CWC in April, 2011. Additional spillway has been provided in place of non-overflow block keeping the other parameters affecting submergence area same as contained in the DPR under. consideration for the project. There will be no change proposed in the dam height as well.

After examination of the DPR of the above project, I am directed to convey that B&B Wing of this Ministry has no objection to the above project from international angle subject to the conditions that the project parameters affecting submergence on upstream side remain unchanged as indicated in -the revised DPR (September, 2009) sent to this Ministry vide MoP's above referred letter. ·

~·,~ b\ \ 0'3.\ 1A''L­

(D.K)Jena) Deputy Commissioner (NE)

Ph:23360353

Shri Kamal Bose, U.S. M/o Power, Shrama Shakti Bhawan, Rafi Marg, New Delhi. MoWRU.O. No. 31/43/2011/B&BL_6Ji2__. dated: 01.03.2012

I -- ..... -.. ---------

---il>-C""1 opy for information to Shri A.K. Sarkar, Executive Director (Pig.), NHPC, NHPC office Complex, Sector-33, Faridabad- 121003 (Haryana).

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S.No. General

1

2

3

4

5

Teesta-IV HE Project

MOU conditions

The Corporation shall arrange all the necessary finances for the implementation of the

Projects.

The Corporation shall ensure that the project works are executed at the completion cost

approved by the Competent Authority and in accordance with Detailed Project Report and

prudent utility practices.

The expenditure incurred by the Energy and Power Department, Government of Sikkim as

per the audited accounts, on the investigations, preparation of Detailed Project Report

(DPR) and approved thereof, pre-construction activities and other infrastructural works,

etc. of the project shall be reimbursed by the Corporation to the Government after twelve

(12) months of the sanction of the project without interest. The expenditure would be

included in the cost estimate of the project. The Corporation shall complete the remaining Survey and Investigation, prepare the

bankable Detailed Project Report (DPR)/ modify the DPR prepared by Central Water

Commission (CWC) duly safeguarding the Namprikdang Mela Grou.nd, wherever required,

obtain requisite clearances from Competent Authorities and implement the "Project" in all

respect. While preparing/ modifying the DPR and during execution of the Project, National

Hydroelectric Power Corporation Limited (NHPC) shall safeguard the Namprikdang Mela

Ground. In view of this, installed capacity of the 'Project' may come down. The Agreement

in respect of the proposed 495 Mega Watt (MW) Teesta stage -IV Hydro Electric Project

shall stand amended accordingly once the DPR is finalized.

If any of the work such as survey and investigation for preparation of feasibility report,

preparation of Detailed Project Report (DPR), planning for infrastructure, acquisition of

land etc of the projects do not start within twelve months from the date of signing of this

Agreement, then the Government shall have a right to terminate this Agreement on

serving 30 (thirty) days notice to the Corporation. However, the Government shall ensure

to provide full support to the Corporation for this purpose.

Action taken

The capital ccst of the project is proposed to be financed on

70:30 debt equity ratio and the flow of equity should be in pari

passu to the flow of commercial loan.

Govt. approval is accorded on present day cost. If any variation

is found during execution, Revised Cost Estimate is prepared &

submitted to Ministry of Power for according approval of

Competent Authority.

Suitable action shall be taken on receipt of intimation from

Govt. of Sikkim.

NHPC did remaining survey & investigation and after

compilation of same the DPR was prepared, which was

appraised and concurred by CEA. Concerns regarding

Namprikdang Mela Ground have been taken care.

DPR preparec by NHPC & concurred by CEA on 13.05.2010.

Construction will start after Govt. approval.

_---.J

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I

Q

Teesta-IV HE Project

S.No. MOU conditions Action taken 6 Nothing shall prevent the Government from surveying, investigation, and execution of any Same shall be followed as per agreed terms.

projects upstream or downstream. However, the same shall not in any manner adversely

affect the works of the 'project' under this Agreement. The Corporation shall be informed

before embarking on such Schemes.

Associated Transmission System

7 The Power Grid Corporation of India Ltd. (PGCIL) shall arrange to provide a suitable After receipt of Govt. approval for implementation, matter integrated transmission system matching with the commissioning of the Project for the regarding Power evacuation will be taken up with PGCIL. evacuation of power from this project. This shall be done in consultation with the Central

Electricity Authority, National Hydroelectric Power Corporation Ltd., Energy and Power

Department and Government of Sikkim and Ministry ofPower (Government of India).

Personnel

8 (i) 2S% of the total posts in the Executive Cadre in the technical as well as the non technical After Govt. approval during construction, the matter will be

discipline and Junior Engineer shall be filled subject to their suitability, on deputation basis taken up.

from the State Government Departments for Sikkim during Construction Stage.

8 (ii) Recruitment of able local persons in Class Ill and IV during construction stage and After Govt. approval during construction, the matter will be

thereafter during Operation and Maintenance (O&M) shall be made in phased manner taken up.

against the requirement of the project only upto SO% (Fifty) percent of the sanctioned

~ strength through local Employment Exchange and balance SO% (Fifty) percent manpower

shall be deployed from the surplus Mananpower available in the Corporation. Till

Employment Exchange is created in Sikkim, this recruitment of Class Ill and IV personnel

shall be made through the concerned Department of the Government of Sikkim only.

Supply of Free Power

9 (i) The free power to be provided to the state shall be as per the policy of the Government of Free power to be provided to State shall be as per existing

India as applicable from time to time, which presently is 12% ofenergy generated at bus Govt. of India Policy and also as per Power allocation by MOP.

bar after excluding auxiliary consumption and transformation losses.

9 (ii) In case the State is not able to utilize the free power, then the Corporation will have no No action required at this stage. objection in facilitating its sale to the other States and the Government of Sikkim getting

the sale proceeds, sllbject to the approval of the Government of India/Central Electricity

Regulatory Commissioning (CERC), if required.

Miscellaneous

~

Teesta-IV HE Project

~OU conditions Action tal<en

lolThe corporation shall ens~re minimum flow of water immediately downstream of the The minimum flow of water immediately downstream of dam weiribarrage/dam so as to protect the rights of the local inhabitants for irrigation and shall be as per Environment Clearance letter.

drinking water requirements as specified in the Environment Clearance issued by the Government of India.

11 I The fishing, recreational and navigational rights in the river, water channels, reservoir, I NHPC will not interfere to the right of State Govt.

Lake etc, shall be vested in the "Government" subject to only such restrictions as may be

necessary for the operational requirements and safety of the Projects.

12 I Subject to security and operational factors, the 'Corporation' shall permit free use by the I Shall be followed as per agreed terms.

Government and the general public, of all service roads, constructed and maintained by it

for the Project. Other facilities like hospitals, post offices, schools etc. shall also be made

available to the general public as per the policy of the Corporation.

13 I Should any existing facilities and/or any easement rights such as irrigation, power, water! Shall be followed as per agreed terms.

supply, road, communication system, path etc. be adversely affected on account of

execution of the 'Project', remedial measures shall be taken by the Corporation at the cost

of the 'Project'. The Corporation shall not interfere with any of the existing facilities till

I I alternate facility is created. · __ 14 The construction of new roads/ widening of roads, strengthening/ construction of bridges, Shall be executed as per agreed terms, if required.

etc outside the Project Area, if requested by the Corporation, shall be executed by the

Government on payment Qf cost of work, cost of land and departmental charges @ 9% of

the cost of the work. In future, any other construction inside the Project Area may be

entrusted to the 'Government' by the 'Corporation' against payment of cost, cost of land

and departmental charges as agreed above.

15 I The 'Government' shall acquire for the 'Corporation' under the Land Acquisition Act, 18941 Shall be executed as per agreed terms, if required.

at the expense of the 'Corporation' such private land within the State of Sikkim as may be

required by the 'Corporation' for the construction, operation and maintenance of the

'Project'. However, the 'Corporation' shall be at liberty to purchase private land through

private negotiations also in accordance with law in force. The ownership of such private

lands, either acquired or purchased directly, shall vest with the 'Corporation' subject to

the land laws of Sikkim.

(i. .......:

I

S.No.

16

17

18

19

20 (i)

20 (ii)

20 (iii)

21 (i)

Teesta-IV HE Project

MOU conditions

The 'Government' shall transfer to the 'Corporation' on ownership basis the non forest

Government land required for the permanent structures/works and for permanent

colonies as is necessary for the construction, operation and maintenance of the 'Project' at

such rates as may be determined by the 'Government' .

The 'Government' shall also arrange for the short term lease of the Government land

required for temporary colonies and temporary structures for the construction of the

Project for a period of 10 (Ten) years from the date of occupation in the first instance,

which may be renewed by the 'Government' for such period as may be required by the

'Corporation' on such terms, conditions and r.ate of lease rent as may be determined by

the Government and Corporation mutually.

The 'Government' shall have the option to purchase such buildings as may be constructed

by the 'Corporation' and such lands as may be rendered surplus to the requirements of the

'Project' on payment at mutually agreed rates.

It is specifically agreed that the Ownership of the Project shall vest in the Corporation.

-The 'Corporation' shall pay to the Forest Department of the Government of Sikkim the

price of the trees coming in the submergence area as are required to be felled or are

damaged in the execution of the Project at prevailing Government rate. The responsibility

of fell'ng and removing of the trees shall lie with the 'Government'. It will be governed by

the Forest Conservation Act,1980

The 'Corporation' shall give preference in transportation of goods and materials for these

project to local people through local Sikkim transportation companies or Government of

Sikkim through Slkkim Nationalized Transport (SNT) and thereafter to others if local Sikkim

transportation companies of Sikkim Nationalized Transport are unable to carry out the

work.

The 'Corporation' shall comply with all conditions laid down by the Government of India,

Ministry of Environment and Forest in their environment and forest clearance orders.

During the investigation and construction of the project, surrounding environment shall be

protected by the National Hydroelectric Power Corporation ltd., as per the guidelines of Ministry of Environment and Forest. -Place of tendering of all contracts and works, except the major Contracts for tunneling,

dam, powerhouse, surge shaft, Electro-mechanical, Hydro-mechanical and supply of

construction materials etc. for these project shall be the project area.

Action taken

Shall be executed as per agreed terms, if required.

Shall be executed as per agreed terms, if required.

No action required at this stage.

Project is being developed on ownership basis by NHPC.

Shall be executed as per agreed terms/ Forest Clearance

conditions.

Shall be executed as per requirement.

Shall be executed as per agreed terms.

Shall be exeCL. ted as per agreed terms.

J

<1'-. p

Teesta-IV HE Project

S.No. I MOU conditions I Action taken

21 (ii) !The 'Corporation' shall submit bar chart of activities and financing plan submitted by it to Project has yet to be sanction by Govt. of India. Thereafter, the

the Government of India to the Government after signing of the contracts with the major works shall be awarded. Regular progress report shall be

contractors for entire construction period and submit quarterly progress reports to the submitted thereafter.

Energy and Power Department.

22 (i) !The package of Rehabilitation and Resettlement (R&R) for the project affected familiesiApproved R&R plan shall be implemented during construction

formulated by the Government in line with the National Policy for Resettlement and of the Project.

Rehabilitation and as approved by the Ministry of Environment and Forest I Government

of India shall be final and binding on the 'Corporation' and the 'Government'. The cost of

the same together with that of the Catchment Area Treatment Plan as approved by the

Ministry of Environment and Forest shall form a part of the cost of the Project.

22 (ii) jAil constructions of the 'Corporation' other than the main structures of the 'Project' e.g.IThe stipulation shall be taken care suitably.

housing colonies, schools, dispensaries, etc. must be made conforming to the Government

regulations. Other plans and designs must confirm to the local regulations, building laws

and such other directions as the Government exercise.

r-2-3-(-i)-~lt shall be the responsibility of the 'Government' to make proper arrangement to maintain I Shall be implemented during construction of the project.

general peace, law and order inside and around the Project area for security and safety of

properties of the 'Project' and life of the workers/experts/engineers/officers of the

'Project'. The security within the project area shall be provided by the 'Government' as

required by the 'Project'. The cost of the security within the project will be borne by the

'Corporation' and shall form a part of the project cost.

23 (ii) pn order to facilitate the State Government to protect the state's fragile environment,IThis is related to construction phase of the Project.

ensure due compliance of the law restricting movement of the persons in restricted areas,

the 'Corporation' shall provide to the State Government the detail list of non-Sikkimese

workers, be it skilled or unskilled, serving in the project specifying the nature of their

works, their particulars and further shall inform the State Government incase any of the

workers leave the service in the project and the names and particulars of their

replacements, if any, as also of the additional workers if appointed. The Corporation shall

ensure that all the outside labourers be registered with the Labour Commissioner's Office

and the District Collector/Sub-Division Office, liaise with tile State Government in all such

matters and shall allow the district authorities or officers of the concerned department to

make inspection of the Project site, relevant registers, books etc. for such purpose.

~ -"

Teesta-IV HE Project

S.No. MOU conditions Action taken

23 (iii) The project shall also to be subject to the laws of Sikkim and jurisdiction of this Agreement This will be as per prevalant law.

is the Court of Sikkim.

24 IThe Corporation shall build/widen existing road interconnecting tho Project at the cost of! Shall be done as per requirement.

the project for the execution of the project. I __ _______ j

25 !Various contracts shall be decided on merits with equal opportunities to the locai,Competitive bidding route with equal opportunities shall be

contractors also in order to maintain cost, quality and transparency. Therefore, as per the followed.

policy the corporation shall neither debar nor provide protection to any set of contractors

as long as they qualify for tendering.

26 I During the award of local contracts, priority shall be given to capable local people so thatiShall be taken care suitably during construction period.

the local people get benefits from the project. Preference shall be given to the local for

supply of meat, vegetables, milk and grocery items to the project employees.

27 lin case any object of archeological importance is found by the Corporation or by anyiShall be execLted as per Law of the country.

office/employees/contractors during the implementation of the Project, the Corporation

shall arrange to handover the same to the Government free of cost.

Provided that in case any precious or semi-precious material/mineral is found/located

from the land acquired for or transferred or leased out to the Corporation for the Project,

the Corporation shall report the fact to the Government immediately and shall keep that

area intact till the final decision is taken by the Government.

28 IAny or all correspondences/demands made or notices to be sent or required to be madeiAII correspondence being made/ shall be made in English

under this Agreement shall be in writing in English language, signed by the party giving language.

such notice (Claim or demand) and shall be delivered personally or by facsimile

transmission coupled with by sending original or by registered mail to other parties at its

addresses set forth herein below or at such other addresses as such other party may

subsequently notify. All notices shall be deemed given when delivered, which include

facsimile as stated.

GOVERNMENT: Principal Chief Engineer cum Secretary Energy and Power Department Government of

Sikkim Gangtok, Sikkim -737101 Tel. No: 03592-202244/ 202284 Fax No : 03592-

202927/202284

CORPORATION:

Chairman cum Managing Director National Hydroelectric Power Corporation Ltd. NHPC

Office Complex Sector-33 Faridabad -121 003 ( Haryana) Tel No: 0129 -2275920, 03592 -

247267 I 235217 I 247357 I 247358 Fax No:0129 -2277941,03592 -247227/247216/222212

I

I

Teesta-IV HE Project

S.No. MOU conditions Action taken

29 Variation in the terms and conditions of this Agreement can be made with the mutual No action is required at this stage.

consent, only in writing, by both the Parties, to be referred as addendum to this

Agreement.

30 Should however, either of the parties neglect and default any of its respective obligations There is no cause of action at this stage. I

under this Agreement, the other parties shall be entitled to cancel/terminate the

Agreement without prejudice to its any other right or remedy as may be available to it

under the Agreement.

31 The parties agree that every dispute, difference of question which may at any time arise Procedure shall be followed, if situation arises at all.

between the parties herein out of or in connection with this Agreement or the subject

matter thereof, including the validity and interpretation of this Agreement in part or full

(hereinafter referred to as "Dispute") shall be settled and resolved in accordance with the

procedure laid down herein:

it\ Parties shall attempt for a period of 30 (thirty) daysafter receipt of notice by the other

r party of the existence of a Dispute to settle such Dispute by mutual discussion. In case the

Dispute cannot be resolve by mutual discussion, the Dispute shall be dealt with as per the

provision of settle law / Government of India guidelines failing which it shall be dealt

through arbitration under the Arbitration and Conciliation Act, 1996.