CAG AUDITORS STUDY SIKKIM’S HYDEL PLANS AND PROCESS

Gangtok - May 14 -

Hydel projects, 27 of which have been awarded in the past few years, are a contentious issue in Sikkim and now aspects concerning the construction and execution of hydro-electric projects have attracted the attention of the Comptroller and Auditor General’s office here in the state. It is learnt that the Accountant General’s office is presently engaged in the preparation of a report on the development of hydel power projects in the state.

Sources inform that the CAG office has been in the process of preparing a comprehensive report on the subject for the past few months. This report, apart from being exhaustive, will also be a review of the policy of the state government on the development of hydel projects.

The report will largely concern the involvement and interest of private participants in the power sector in Sikkim. The decision to prepare such a comprehensive report on power projects in Sikkim was largely prompted with the acquiring of certain information by the CAG office, it is learnt. Besides this was also due to the noticeable impact it was having in the socio-politi

cal characteristic of the state particularly in the light of the protests raised by the public in North Sikkim. On the other hand, the expected economic impact that such projects may affect is also the part of the reason for such a report by CAG.

The CAG will be studying the selection process of the private players with whom memorandums of understanding have been signed by the State government for the development of power projects. In this regard, the report will study the capability of the private players for power development, as well as the level of transparency followed in awarding hydel projects to them.

The terms of agreement will also be studied clause by clause especially in whose favour the terms point towards. Besides, the report will also include a study of the objectives of the State government through hydel power development that can be achieved , economically and socially, through such hydel power development. Not to be left out will be the implications of the development of this sector along with recommendations to the State government which the latter can use for streamlining its policy as well as execution of the projects and also to help achieve its objectives.

All this will be done taking into consideration the process of development of power projects in other states, including their context and other similar parameters.

It may be recalled that the Power & Energy Department is already preparing a White Paper on the development of power projects in Sikkim, a task task that has been enthrusted to a public sector agency in Noida. This White Paper is also being prepared along similar lines with almost the same issue and is expected to to be handed over to the State government within the next few days.

source: Sikkim Now!