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Flash floods impact NHPC's Teesta-VI HE Project in Sikkim

Oct 18, 2023

By: BlinkX Research Team

NHPC Limited, the owner of the Teesta-VI HE Project in Sikkim, provides information regarding the impact of a flash flood in the Teesta Basin on October 4, 2023, affecting the project executed by Lanco Teesta Hydro Power Limited, a wholly-owned subsidiary of NHPC.

The flash flood resulted in an estimated loss of approximately ₹233.56 crores. The project's assets and works are insured under a Construction All Risk (CAR) Policy, subject to excess clause and loss limit.

As of the current date, no insurance claims have been realized. A formal claim will be lodged, and the amount for the damage and loss will be realized as per the CAR policy's terms.

Assessment of the situation is ongoing, and restoration work is in progress. The calamity is expected to cause a time delay of at least six months, leading to cost overruns for the project.