Controversy Over Sikkim Government’s Disinvestment in Teesta III

High Court Continues Hearing on PIL Challenging Stake Sale to Greenko

The Sikkim High Court today the sixth hearing on the Public Interest Litigation (PIL) filed by former SDF candidate M.K. Subba, challenging the state government’s decision to sell 60.2% of its stake in the Teesta III hydropower project to private company Greenko Energies Pvt. Ltd. The petition questions whether the disinvestment was in Sikkim’s best interest and raises concerns about financial mismanagement and lack of transparency.

Following the hearing, M.K. Subba stated that no verdict was issued today, and the court will schedule the next hearing soon. He criticized the government’s decision, questioning why a profitable state asset was handed over to a private company without exploring alternative financial solutions.

The Sikkim government, under Chief Minister Prem Singh Tamang, has defended the move, arguing that it was essential to clear outstanding debts and stabilize the state’s economy. However, critics argue that Sikkim Urja Ltd had reported a ₹1,270 crore profit in 2022-23, proving that the company was financially strong. They further claim that ₹3,500 crore was due from power distribution companies in Punjab and Haryana, which could have improved Sikkim’s financial position without selling state assets.

Major Concerns Raised in PIL

• No Open Bidding: Critics argue that a competitive bidding process could have secured a better deal for Sikkim.
• Profitability Ignored: With ₹1,270 crore in profits, Sikkim Urja Ltd was already financially viable.
• Unpaid Dues Overlooked: The state could have recovered ₹3,500 crore from Punjab and Haryana instead of selling its stake.
• Political & Legal Scrutiny: The BJP’s Sikkim unit has written to PM Narendra Modi, seeking a review, while opposition parties SDF and Congress have slammed the move.

The Teesta III project, which suffered major damage in the October 2023 glacial flood, is set for reconstruction, with the central government approving a new dam design. However, environmental experts warn of risks, as Sikkim has 119 glacial lakes, with 50 classified as high-risk zones. Separate legal challenges regarding the environmental impact are still pending before the Sikkim High Court and the National Green Tribunal (NGT).

With political, financial, and environmental concerns mounting, the controversy surrounding Teesta III disinvestment continues to escalate. While the government maintains that selling the stake was a financial necessity, opposition parties argue that Sikkim may have lost out on a much better deal. The next High Court hearing is expected to provide further clarity on the matter.