Sikkim’s Hydropower War: Tsheten Tashi Challenges Teesta III Disinvestment in Court

A legal and political storm has erupted over the Sikkim government’s decision to disinvest its majority stake in the Teesta III Hydropower Project. Tsheten Tashi Bhutia, Chief Advisor of the BJP state cadre, has filed a writ petition in the Sikkim High Court challenging the sale of a 60.08% stake in Sikkim Urja Limited (SUL) to Greenko Energies, a renewable energy firm.

The petition, filed on February 24, argues that the decision was “arbitrary and unreasonable.” Bhutia claims the state government ignored revival strategies proposed during a meeting with the Union Minister of Power and the Sikkim Chief Minister in December 2023, which included claiming insurance, recovering ₹3,500 crore in outstanding dues from Punjab and Haryana, and securing a loan moratorium.

Bhutia questions why the government opted for disinvestment rather than pursuing these alternatives. He also raises concerns over the lack of an expert committee to assess the project’s value, calling the ₹4,000 crore capital infusion demand unjustified.

The decision to rebuild the dam, which was severely damaged by a glacial lake outburst flood (GLOF) in October 2023, has drawn criticism from environmentalists. Despite seismic risks and incomplete assessments of spillway capacity, the centrally-appointed Expert Appraisal Committee (EAC) approved the reconstruction on January 10, 2024. Activists argue that the environmental risks have been overlooked.

Chief Minister Prem Singh Tamang defended the disinvestment, stating that Greenko’s acquisition was necessary to prevent long-term financial instability. He blamed the previous government for agreements that left the state with no choice but to transfer the stake.

The controversy has heightened political tensions in Sikkim, with the BJP state unit urging Prime Minister Narendra Modi to halt the project’s clearance until a thorough environmental study is conducted. The next court hearing is set for March 18, where the case will be heard alongside a similar petition by former SDF leader M.K. Subba.

The dispute underscores the fragile balance between economic development and environmental sustainability in Sikkim’s hydropower sector.