In the wake of the devastating floods in Sikkim, the National Hydroelectric Power Corporation (NHPC) has informed the stock exchanges that its power projects within the Teesta Basin region have been adversely affected. Specifically, NHPC's Teesta-V power stations (510 MW) and Teesta-VI HE Project (500 MW) have borne the brunt of the disaster, resulting in the complete shutdown of these power stations.

NHPC explained the situation, stating, "Power stations/projects of NHPC Limited, including its wholly-owned subsidiary, located in the Teesta Basin, have been impacted by flash floods in the area. In light of this emergency situation, all units of the Teesta-V power station have been temporarily halted. A comprehensive assessment of the losses and damages incurred will be conducted once the water levels recede. It is worth noting that the assets and loss of profit for the power station are fully covered by a Mega Insurance Policy, while all assets of the Teesta-VI project are insured under the Construction All Risk Policy."

As of the time of writing this report, NHPC Ltd's stock has experienced a decline of 0.90%, equivalent to 1.69%.

The cloudbursts and flash floods in Sikkim have tragically claimed the lives of 14 individuals. Over 2,000 people have been successfully rescued, and the state authorities have established 26 relief camps to accommodate more than 22,000 individuals who have been affected by the floods. Regrettably, 102 people remain missing, among them 22 Army personnel. In a glimmer of hope, one soldier who had been reported missing on Wednesday was later found and rescued by authorities.

The ferocious floodwaters have washed away eleven bridges and inflicted damage on pipelines, while also causing the destruction of over 270 homes across four districts. The flooding primarily occurred along the Teesta River in the Lachen Valley within Sikkim state, and it was exacerbated when parts of a dam were washed away.

Several towns, including Dikchu and Rangpo in the Teesta basin, were submerged, prompting the closure of schools in four districts until Sunday.

In response to the crisis, the office of Prime Minister Narendra Modi has pledged government support to the state authorities during the post-flood recovery and rehabilitation efforts.

The flooding was instigated by cloudbursts, characterized by sudden and exceptionally heavy rainfall, defined as more than 10 centimeters (3.9 inches) of precipitation within a 10 square kilometer (3.8 square mile) area in just one hour. Cloudbursts can lead to severe flooding and landslides, affecting a large number of people.

The mountainous Himalayan region, where Sikkim is situated, has experienced unusually heavy monsoon rains this season.

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