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Jun 29, 2020
2:12PM

Agreement for Hydroelectric Project in Bhutan signed in presence of EAM S Jaishankar

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The Concession Agreement for the 600 MegaWatt Kholongchhu (Joint Venture) Hydroelectric Project between Bhutan government and Kholongchhu Hydro Energy Limited was signed today in Thimphu, in virtual presence of External Affairs Minister Dr. S Jaishankar and his Bhutanese counterpart Dr. Tandi Dorji. The 600 MW run-of-the-river project is located on the lower course of the Kholongchhu River in Trashiyangtse District in Eastern Bhutan.

The Project envisages an underground powerhouse of four 150 MW turbines with water impounded by a concrete gravity dam of 95 meters height. It will be implemented by Kholongchhu Hydro Energy Limited, a Joint Venture company formed between Druk Green Power Corporation of Bhutan and Satluj Jal Vidyut Nigam Limited of India. The signing of the Concession Agreement will lead to commencement of construction and other works of this first Joint Venture Hydroelectric Project between India and Bhutan. The project is expected to be completed in the second half of 2025.

Both the External Affairs Minister of India and Foreign Minister of Bhutan emphasized the importance of hydro power development as an important pillar of mutually beneficial bilateral economic cooperation. They also recalled the trust, co-operation and mutual respect that have long characterized the unique and special friendship, anchored in mutual understanding and reinforced by a shared cultural heritage and strong people to people links between India and Bhutan.

Hydropower sector is the flagship area of India-Bhutan bilateral cooperation. The 720 MW Mangdechhu hydroelectric project was jointly inaugurated earlier in August last year by the Prime Ministers of India and Bhutan. With this, four hydroelectric projects of bilateral cooperation totaling over 2100 MW, are already operational in Bhutan.

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