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Kolkata June 26 An agreement was signed here today between the Governments of West Bengal and Sikkim to enable NTPC Hydro Ltd to establish the 4 X 30 MW Rammam Stage II hydro electric project.

NTPC Hydro has been assigned the work to build, own, operate and maintain the project on the river Rammam that runs along the boundaries of West Bengal and Sikkim. The project cost has been estimated at Rs 650 crore and this would be funded entirely by NTPC Hydro Ltd.

According to a communiqué issued at Writers' Buildings here, a 4 X 12.75 MW hydro electric project had been established by the West Bengal State Electricity Board on the river Rammam in 1995. The project is functional.

Of the power generated in the Rammam Stage II hydro electric project, Sikkim would be entitled to 12 per cent of the power generated (14.4 MW) free of charge while NTPC Hydro would be entitled to 15 per cent of the power (16MW) for sale at its discretion either within West Bengal or outside it. The project is expected to be completed by 2011-12.

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