Calcutta, June 26: Bengal will get the lion’s share of the Rs 650-crore hydel power project coming up on the river Rammam in Darjeeling district.

Sikkim will get 14.4mw of the generation by the 120-mw plant that will be set up by National Thermal Power Corporation Hydro Limited.

An agreement was signed on this today between the Bengal and Sikkim governments.

NTPC Hydro will be entitled to 15 per cent of the power generated (16mw) for sale — within Bengal or outside the state.

The residual power (around 90mw) will be purchased by West Bengal State Electricity Distribution Company Limited at rates determined by the Central Electricity Regulatory Commission.

“The project — Rammam- Stage III — is expected to be completed by 2012.

“According to the agreement, the majority of the electricity generated from this project will be purchased by the West Bengal State Electricity Distribution Company Limited,” said power minister Mrinal Banerjee, in whose presence the agreement was signed at Writers’ Buildings.

NTPC Hydro will set up the power plant on the Rammam river for which it had entered into an agreement with the erstwhile West Bengal State Electricity Board.

The project will come up on 70 hectares.

Water will be tapped from the Rammam river and a barrage will be set up at Lodhama, 65km from Darjeeling.

The powerhouse will have three units of 40mw each and will be located at Karmatar, near Lodhama.

A tunnel will be laid over a distance of about 8 km to take the water from Karmatar.