The Hindu Business Line : ‘Sikkim can play major role in cross-border energy trading’

“Development and ecology are not necessarily contradictory to each other. What we need to ensure is striking a balance between the two,” Mr Saran said.

Sarikah Atreya

Gangtok, July 25 Mr Shyam Saran, Special Envoy of the Prime Minister, said here that Sikkim could play a major role in cross-border energy trading with countries such as Nepal, Bhutan and Bangladesh by harnessing its hydel power potential to the fullest. “By tapping its huge hydro-electric potential, Sikkim can become a major supplier of power to the neighbouring countries,” he said.

Mr Saran said that hydro-power could become a “catalyst for Sikkim’s prosperity, while preserving its reputation as an eco-friendly State”.

He was delivering a lecture on the ‘Role of Border States in India’s Foreign Relations and Regional Economic Cooperation’. The talk is a part of the Eminent Persons Lecture Series organised by the State Information and Public Relations Department.

The former foreign secretary also said that Sikkim had “the potential of generating 8,000 MW of power from hydro-power, but the current installed capacity is very low, at only 40 MW according to some estimates”.

He added: “The 10th Plan target of establishing 510 MW of hydro-power from the Teesta Stage V project has been delayed and may be commissioned only within the 11th Plan. There are several other projects which need to be taken up on priority.”

Among the low tariff projects identified by the Planning Commission Task Force on Connectivity and Promotion of Trade and Investment in the North-East were the 210 MW Lachen, 105 MW Dikchu, 200 MW Panam and 320 MW Teesta Stage I projects, which added up to 835 MW of installed capacity.

Other projects identified by the taskforce are: 1200 MW Teesta III with an initial capacity of about 600 MW; 71 MW Sadamander; 99 MW Chujachen; 51 MW Bhasmay; and the 510 MW Teesta Stage V project. “All these are recommended for inclusion in the 11th Plan. With these projects, Sikkim can become a major supplier of power to the rest of the country and even to neighbouring countries if there is a surplus,” Mr Saran said.

Answering a question, Mr Saran said the ecological concerns of the people regarding mega hydel projects were expected but they need not have any fears if necessary safeguards were taken by the State Government to protect the environment.

“Development and ecology are not necessarily contradictory to each other. What we need to ensure is striking a balance between the two,” he added. Talking about Sikkim’s specific role in the rapidly evolving economic environment and its particular strengths and advantages, Mr Saran said that the most striking feature of Sikkim was that it was the only border State in India which had three countries – Nepal, China and Bhutan – as adjacent neighbours and another – Bangladesh – virtually its neighbour (across the Siliguri corridor).

“This is a locational asset which can be leveraged in various ways. Sikkim can be the conduit of trade for virtually the whole of eastern India with Nepal, China and Bhutan and, if politics permit, between China and Bangladesh as well,” Mr Saran said. To enable Sikkim to leverage its locational advantage, the key lay in the development of infrastructure, he added.

Describing the opening of Nathula in East Sikkim for border trade with China as a significant development, he said the Centre was planning to develop it finally as a point for carrying out completely normal trade with China.

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