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Kholongchhu Hydro Energy Pact Signed in Bhutan

Power News - Published on Tue, 07 Jul 2020

Image Source: Kholongchhu Hydro
The Indian government and the Kholongchhu Hydro Energy Limited signed the first joint venture hydropower project between Bhutan and India in Thimphu, six years after the foundation stone was laid. According to the agreement, concession rights are given to the developer to build, own and operate the project for a concession period of 30 years and then transfer it to the Bhutanese government in good running condition at free of cost in keeping with the Bhutan Electricity Act and Bhutan Sustainable Hydropower Development Policy.

The Trashiyangtse-based 600MW run-of-the-river project is expected to generate about 2,568.88 million units annually. Kholongchhu Hydro Energy Limited, which is a joint venture company formed between Druk Green Power Corporation and India’s Satluj Jal Vidyut Nigam Limited, is expected to complete the project by the second half of 2025. The project is being financed through a debt-equity ratio of 70:30 with 50-50 equity holdings between the Druk Green Power Corporation and the Satluj Jal Vidyut Nigam Limited. Indian Prime Minister Narendra Modi had laid the foundation stone for the project during his visit to Bhutan on June 16, 2014. His Royal Highness the Gyaltshab Prince Jigme Dorji Wangchuck graced the groundbreaking ceremony on September 18, 2015.

Pre-construction works have been completed. However, the work award for the construction of the dam, headrace tunnel and the powerhouse have been delayed as the two governments had to finalise tariff determination on a long-term power purchasing agreement before signing the agreement.

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Posted By : Yogender Pancholi on Tue, 07 Jul 2020
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