Sikkim HC Hears PIL On State Govt’s 60% Stake Sale in Teesta III
First Published: 4th March, 2025 20:43 IST
With legal, financial, and environmental concerns piling up, the Teesta III disinvestment has turned into a major political flashpoint.
The Sikkim High Court today heard the Public Interest Litigation (PIL) filed by former SDF leader M.K. Subba, challenging the state government’s decision to sell 60.2% of Sikkim Urja Ltd’s stake in the Teesta III hydropower project to private firm Greenko Energies Pvt. Ltd.
After the hearing, M.K. Subba informed the media that no judgment was passed today, and the court is expected to schedule the next hearing soon.
Subba questioned why such a profitable state asset was handed over to a private company without exploring other financial solutions.
In the PIL, Subba has raised serious concerns about mismanagement of funds and whether the deal was in Sikkim’s best interest at all.
The Sikkim government has defended the move, claiming it was necessary to clear outstanding debts and stabilize the state’s finances. However, critics argue that Sikkim Urja Ltd recorded a Rs 1,270 crore profit in 2022-23, proving that the company was financially strong. Furthermore, Rs 3,500 crore was still due from power distribution companies in Punjab and Haryana, which could have improved Sikkim’s financial position without selling off assets.
The PIL also raises concerns over the lack of an open bidding process, which could have secured a better deal for the state. The BJP’s Sikkim unit has written to Prime Minister Narendra Modi, urging him to review the deal, while the SDF and Congress have slammed the government, calling the decision hasty and against Sikkim’s long-term interests.
Meanwhile, the Teesta III project, which suffered severe damage in the October 2023 glacial flood, is set for reconstruction, with the central government approving a new dam design. However, environmental experts warn that Sikkim has 119 glacial lakes, with 50 classified as high-risk zones. Legal challenges regarding the environmental impact of the project are still pending in the Sikkim High Court and the National Green Tribunal (NGT).
With legal, financial, and environmental concerns piling up, the Teesta III disinvestment has turned into a major political flashpoint in Sikkim. While the government insists that selling the stake was financially necessary, opposition parties argue that the state may have lost out on a much better deal. The next hearing is expected to bring further clarity to the case.
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