State-owned hydropower company NHPC has claimed insurance for an estimated loss of Rs 788 crores to the 510 MW Teesta V Power Station due to the Sikkim flash floods, out of which it has given out only Rs 3 crores to relief of people.
As per information received, the NHPC has claimed the money as insurance for damage caused to the 510 MW Teesta V Power Station. Of the expected quantum of losses, material damage is seen at Rs 297 crore and business loss at Rs 491 crore.
According to a letter issued by the NHPC authorities, the damages incurred by the Teesta V Power Station due to flash floods are as follows:
1) Expected quantum of loss/ damage caused due to the natural calamity/ other force majeure events: Rs. 788 Crore approx. (Material Damage: Rs. 297 Crore and Business Loss: Rs. 491 Crore)
2) Whether loss/ damage covered by insurance or not, including amount: Yes, the assets and Business Interruption Loss of Power Station is fully insured under Mega Insurance policy.
3) Insurance amount claimed and realized by the listed entity for the loss/ damage - NIL (as on date). However, formal claim shall be lodged and amount for Material Damage as well as Business Interruption Loss would be realised in due course of time.
4) Details of steps taken to restore normalcy and the impact of the natural calamity/ other force majeure events on production or service, financials of the entity: Assessment is being done and works are under progress.
Notably, due to flash floods in the Teesta Basin in the intervening night of October 3 and 4, all the bridges downstream to Teesta-V Hydropower Station upto Tarkhola/ Pamphok were submerged thus severely affecting commutation and communication in these areas. The flood water overtopped the Dam of Teesta V Power Station (510 MW).
