State owned firms NHPC and SJVN have signed a memorandum of understanding with the Manipur government for the establishment of a joint venture company to execute the 1500MW Tipaimukh Dam Project. However, the details of the project cost and timeline are yet unclear. The proposed project, which is to be a multi-purpose hydro power facility with flood management functions, is expected to be located on the Barak River in the Churachandpur district of Manipur. Once implemented, it would be amongst the largest hydro power projects in the country. Originally awarded to the North Eastern Electric Power Corp. in 1999, the project was subsequently handed over to a consortium comprising NHPC, SJVN and the Manipur government in 2009. While NHPC will have an equity interest of 69%, SJVN and the state government will hold 26% and 5% respectively. Of the three parties in the consortium, SJVN, which is a joint venture of the government of India and the government of Himachal Pradesh, has hit the market with its initial public offering on 29 April 2010. However, there have been misgivings in Bangladesh over the fact that the Tipaimukh dam may have an impact on millions of Bangladeshis who depend on the Surma and Kushiara rivers, which could be affected if the dam comes up. Its implementation could also inundate a number of villages in Manipur. Indeed, the issue was reportedly raised by Bangladeshi Prime Minister Ms Sheikh Hasina when she met her Indian counterpart Dr Manmohan Singh, recently. But sources said that subsequent to the formation of the joint venture firm for undertaking the project, a detailed project report would be prepared, which could bring clarity to the matters under contention.
