India's NHPC zeroes in on Bhutan projects

Details of a joint venture company for developing 770 MW Chamkharchhu-1 hydro power project will be finalized soon between NHPC and the Bhutan government.

The Chamkharchhu-1 in Bhutan is expected to cost more than Rs 3,500 crore and the expense could go up depending on the geological conditions, an NHPC official said.

The project would be funded on a debt to equity ratio of 70:30. Out of the total debt portion, around 51 per cent would come from NHPC and the remaining from Bhutan entity.

"About 20 per cent of the electricity generated from the project would be utilised in Bhutan and the rest would be available for India," the official said.

India's state-run National Hydropower Corporation would have 51 per cent shareholding in the joint venture entity while the remaining stake would be with a Bhutan government entity, a company official said.

The Chamkharchhu-1 project would be implemented under Build-Own-Operate-Transfer mode.

In addition, NHPC has submitted the Project Feasibility Reports for projects in Kuri Gongri Reservoir in Bhutan. The PFRs were submitted to Indian and Bhutanese governments in May this year.

The company is also providing design and engineering consultancy services for the 720 MW Mangdechhu hydro power project in Bhutan.

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