Teesta Stage III Hydro power project of Sikkim, which was completely washed away by the glacial lake outburst flood, earlier this month is unlikely to get the full insurance claim as global reinsurers and state-owned GIC Re have said they can only pay up to Rs 500 crore as claims.
The 1,200 MW project is run by Sikkim Urja Ltd (formerly Teesta Urja), which is 60 per cent owned by Sikkim Power Investment Corporation Ltd (SPICL). Asian Genco TUL Pte Ltd owns 30.16 per cent stake in the company. Iffco-Tokio General Insurance is the lead insurer of the project with a consortium of insurers. The project was insured with a sum assured of Rs 12,000 crore, but reinsurers said the payout will be restricted to Rs 500 crore due to GLOF conditions. “We will go by the rules and the insurance contract that Sikkim Urja has signed with reinsurers. The contract clearly says in case the project is damaged by (GLOF), the claims will be limited to Rs 500 crore. The company has paid their premium accordingly,” said an official of a reinsurance company.
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