Sikkim Govt Starts Rehabilitation Program for Flash Flood Victims
Govt to Build 2,100 Houses for Those Who Lost Their Homes
The Sikkim government, which invested over Rs 2,700 crore to acquire a controlling stake in the Sikkim Urja Teesta-III hydroelectric project, did not begin to turn a profit until the previous fiscal year.
The flash flood on October 4 carried it away.
According to P.S. Tamang (Golay), the chief minister of Sikkim, the project was losing money until recently.
"We earned Rs 203 crore from the project in 2019–20, but we also owed Rs 378 to financial institutions. In a similar vein, we earned Rs 173 crore in 2020–21, yet we still owed Rs 329 crore. The earnings for 2021–2022 were Rs 305 crore, but we were required to pay Rs 335 crore, according to Golay.
Only in the 2022–2023 fiscal year did the Sikkim government turn a 32 crore rupee profit.
"We made Rs 440 crore in 2022–2023 but had to pay Rs 408 crore,” Golay stated.
As of March 31, Teesta Urja's loan of Rs 6,800 crore was guaranteed by the state government, which also owed Rs 2,898.97 crore. It has acquired a 60.08 percent share in the project through loans from banking organizations.
The largest project in Sikkim, 1,200 MW, was finished in 2017 at an estimated cost of Rs 13,965 crore, having originally been predicted to cost Rs 5,700 crore.
The chief minister of Sikkim stated that the government was left without even the choice to sell 12% of the electricity due to the dam's collapse.
Rebuilding the dam will take at least three to four years, according to Golay, who also mentioned that the state government's ability to pay off its debt for the project was severely limited. Many in Sikkim are opposed to the dam's reconstruction.
The Sikkim cabinet approved a rehabilitation program for those impacted by the flash flood on Tuesday as well.
The state administration reports that the floods that affected about 88,000 people resulted in 1,428 entirely damaged and 579 partially damaged buildings.
In addition to building 2,100 houses for those who lost their homes, the state administration also chose to create a Janta Housing Colony for people who were renting.
According to Golay, "people can live in the housing colony for free for three years after which they will have to pay a nominal rent."
Additionally, the state government has agreed to give students from the impacted households a one-time stipend of Rs 10,000 so they can purchase school uniforms and other necessary supplies. They would get free textbook distribution.
In addition, a set of culinary utensils and other home supplies would be sent to each impacted family.
The state government has also made the decision to help people launch enterprises by providing loans up to Rs 10 lakhs. Golay declared, "The government will cover the interest on the loan for a duration of 24 months."
