The power companies of India and Bhutan signed a Memorandum of Understanding to expedite the process of developing four hydropower plants. Druk Green power corporation and Satluj Jalvidyut Nigam Limited signed the MoU following the signing of agreements on April 22 by the respective governments.
Kholongchhu (600 MW), Chamkarchhu (700MW), Wangchu (570MW) and Bunakhachhu(180MW) are in the pipeline for harnessing covered by the joint venture project.
It is leaned that Kholongchhu project will be financed through 70 percent loan and 30 percent equity.
The kuensel quoted the managing director of DGPC who said the project will begin by September or October this year.
The two companies are to form a joint venture company in three months. But, before that some regulatory compliance for the construction and acquisition of land has to be done. An approval of clearance from National Environmental Commission and Bhutan Electricity Authority need to be acquired by the joint venture company, a mandatory provision, according to Chhewang Rinzin, the managing director of DG