2020-06-30
India and Bhutan sign agreement for 600 MW hydroelectric project in Bhutan

India and Bhutan sign agreement for 600 MW hydroelectric project in Bhutan

A Concession Agreement for 600 MW hydroelectric project was inked between India and the Royal Government of Bhutan and Kholongchhu Hydro Energy Limited on Monday, June 29.

The agreement was signed virtually in presence of Dr. S. Jaishankar, External Affairs Minister, Government of India and Lyonpo Dr. Tandi Dorji, Foreign Minister, Royal Government of Bhutan in presence of other senior government officials and secretaries of both the countries.

“The Project envisages an underground powerhouse of four 150 MW turbines with water impounded by a concrete gravity dam of 95 meters height,” MEA said in its statement.

The hydroelectric project will be jointly implemented by Kholongchhu Hydro Energy Limited, a joint venture formed between Druk Green Power Corporation (DGPC), Bhutan, and Satluj Jal Vidyut Nigam Limited (SJVNL), India, and is expected to be completed in the second half of 2025.

The hydropower sector has been an area of long-standing bilateral cooperation between India and Bhutan. With the latest agreement, India and Bhutan have a total of four hydroelectric projects (336 MW Chukha HEP, 60 MW Kurichhu HEP, 1020 MW Tala HEP and 720 MW Mangdechhu HEP), totaling over 2100 MW, already operational in Bhutan.