Teesta Urja Limited has been incorporated as a 'Special Purpose Vehicle' (SPV) for the development of Teesta Stage-III H.E.P.

The power generation potential of the Teesta Basin is estimated 7046 MW of which only 510 MW is presently commissioned.

The power potential of Teesta river itself is planned to be harnessed through a cascade of six hydro projects and the third stage of this cascade is the 1200 MW, Teesta – Stage III hydro electric project - the biggest of the six schemes.

Implementation of the 1200 MW Teesta – Stage III H.E.P has been entrusted to “Teesta Urja Limited” (TUL) by Govt. of Sikkim on July18, 2005. All the statutory clearances for the Project were received by November 2007 and the Civil Works for the Project were started in January 2008.