Lockdown to cause time and cost overrun for 6k crore hydroproject in Sikkim

SILIGURI: Ongoing lockdown is going to significantly push up time and cost needed for the completion of 500MW ‘Teesta VI’ Hydropower project of NHPCNSE -1.42 % Limited in Himalayan state Sikkim. The escalation may also cause an impact on tariff structure of the project output.

“The lockdown is there on a greater cause. But it has put this near 6 k crore project under an unusual situation,” said D. Chattopadhyay, Executive Director, NHPC Limited.

According to him, the contract for large portion of civil works have already been awarded to the contractors with a targeted time frame for the work. The lockdown may cause difficulty in maintaining the time frame. In this case however, none of the two parties, NHPC or the contractors, will have to pay any financial compensation for this delay to the other.