Looking to put back on track three stalled power projects in Sikkim, the Centre this week will meet officials of the state government and PSUs to resolve issues hampering implementation of the proposed plants.

Three stalled plants, Panan, Teesta VI and Rangit IV, in Sikkim have total generation capacity of 920 MW.

"Power Ministry has called a meeting this week with top officials of Sikkim and PSUs like NHPC to resolve the key issues plaguing implementation of Panan, Teesta VI and Rangit IV power projects," a senior official told PTI.

"Centre has already shown its intent to complete these projects. The three projects have been awarded to private developers. Thus government would have to either incentivise these players or cancel their contracts after paying compensation for their investments," the official added.

The Centre is roping in the Sikkim government as the state has awarded these contracts and is also beneficiary of the projects.

Teesta VI project of 500 MW is being implemented by Lanco Teesta Hydro Power Pvt Ltd ( LTHPPL).

On the status of the project, the official said, "The company is saying that they are working on it."

The 300 MW Panan project is a joint venture of Sikkim government and Himagiri Hydro Energy Private Ltd. The state government was to infuse 26 per cent equity in the project. It is almost stalled.

The Rangit IV project of 120 MW capacity was awarded to Jal Power Corporation Ltd in 2004.

"The developers are not keen to make further investments because they know that they would not be able to break even soon," the official said.

"They would have to sell power at over Rs 6 per units to recover their investment while power is available at Rs 2-3 per unit at energy exchanges. They will exit the project only when they would get good compensation."

The Power Ministry recently told Parliament that of 12th Plan hydro capacity addition target of 10,897 mw, capacity aggregating 4,371 mw is slipping, and 930 mw capacity is critical to commissioning during the Plan period (till March 31, 2017).

Based on the current status of projects, the likely capacity addition during the 12th Plan is 6,755 mw, it said.

The factors for this slippage include disruption of works by locals, delay in regulatory clearance, land acquisition issues and poor geology, it added.