The state-owned Power Grid Corporation of India Limited (PGCIL) has entered into a Shareholder’s Agreement with Teesta Urja Ltd to form a Joint Venture Company named “Teestavalley Power Transmission Limited”.  

Under the arrangement, Power Grid and Teesta Urja will have 26% and 74% stake respectively in the Joint Venture Company.  

The JV company will develop associated transmission system for evacuation of power from 1200 MW Teesta-III Hydro Electric Project (HEP) being developed in Sikkim by Teesta Urja Ltd.  

The project, which is estimated at cost of Rs 708 crore, will be built on a build-own-operate (BOO) basis on a 70:30 equity-debt basis and provide transmission capacity to private HEPs in north Sikkim.
 
The project includes construction of  400 kV D/C Teesta – Mangan Transmission line (Approx. length 10 kms) and 400 kV D/C Mangan-Kishanganj Transmission Line (Approx. length 180 kms).  

The said project is scheduled for completion by September 2011.