Kundan Green Energy on Tuesday said it has secured a contract from the Sikkim government to set up a hydropower project of 21 MW at Rellichu. The company aims to complete the project by 2026, Kundan Green Energy said in a statement.

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The Rellichu hydropower project will generate 21 MW of power and add very substantially to Sikkim's energy and developmental agenda. The project will take the combined hydropower capacities of Kundan Green Energy to 125 MW from the present 104 MW.

Udit Garg, Director, Kundan Green Energy said, "The Northeast accounts for 40 per cent of India's hydropower potential. Of this, Sikkim's hydropower potential is assessed at 8,000 MW peak with a firm base of 3,000 MW. With as many as 29 approved hydropower projects in various stages of development, and a 55 MW small hydropower installed capacity, Sikkim has vast potential to generate hydroelectricity." The company did not provide any financial details of the project.