The National Hydroelectric Power Corporation (NHPC) of India has said that it will complete the third and fourth stages of the Teesta low dam (TLD) project by 2004, a year ahead of schedule. NHPC has signed a memorandum of understanding on the completion of these projects with the West Bengal State Electricity Board. NHPC has also said that it may become possible to increase the capacity of the TLD projects to 300MW, from the originally envisaged 232MW.

The TLD project exploits the hydro power potential of the Teesta river, which originates in Sikkim and flows through North Bengal. The first two stages of the project with a total capacity of 100MW are in Sikkim, while stages three and four (100MW and 132MW respectively) are located in West Bengal.