The project, which has six units of 200 MW capacity each, was to be originally commissioned by September 2012.
Minister of State for Power Piyush Goyal informed the Lok Sabha that commissioning of Teesta project has been delayed "to June 2015".
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In a written reply, Goyal said due to force majeure events like earthquake in September 2011, flash flood in 2012 and other issues such as disputes arising out of share holding pattern between different constituents of Teesta Urja Ltd delayed the project.
Teesta Urja, a joint venture company with Sikkim government, is implementing the project.
"The project is under construction and about 89 per cent of physical progress has been achieved," the Minister, who is also in charge of Coal and New and Renewable Energy, said.
For speedy execution, a high power monitoring committee headed by Sikkim's chief secretary has been set up to monitor the project's progress.
Further, Sikkim government has nominated one chairman, one executive vice chairman and one director in the board of Teesta Urja for close monitoring of the project.