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India Bhutan Power Agreement

India Bhutan Power Agreement

In accordance with the agreement reached, construction of the Kholongchhu Hydro Electric Power (HEP) project will begin shortly and will be completed in the second half of 2025. The Government of India will provide as a subsidy the share of the equity of the Bhutanese DGPC in JV Company. Once the project is commissioned, the JV partners will operate it for a period of 30 years, called the concession period, under which full ownership will be transferred to the Government of Bhutan, which in the meantime receives the power of the project as a “royalty”. Electricity tariffs, a sticky topic, will be negotiated closer to project completion. The agreement on the project between the Government of Bhutan and Kholongchhu Hydro Energy Limited was signed in the presence of Indian Foreign Minister S Jaishankar and his Bhutanese counterpart Tandi Dorji. The two ministers participated in the event via video link. The Basochhu I and II power plants, near Wangdue Phodrang, were built with Austrian technical and financial support. Basochhu I has a capacity of 24 MW and Basochhu II has a capacity of 40 MW. The installation is fully computerized. The turbines of the installation operate with water in the event of a fall. [31] Basochhu is operated by Druk Green. The project was successfully commissioned by Bharat Heavy Electricals Limited (BHEL) in early August 2019 and officially inaugurated on 17 August 2019 by the Prime Ministers of India and Bhutanese of Thimpu, the capital, under the aegis of the Bhutan-India Friendship Project. [43] [44] Like other recent projects, it is entirely financed by India, 40% by grants and 60% by loans.

[45] The energy installations and electromechanical machines were delivered by BHEL from their various sites in India. The first major extension of hydroelectric power plants began in 1975 at Wang Chhu, between Thimphu and Phuntsholing. Known as chukha Hydel, he helped promote the country`s young industrial development. The 336-megawatt Chukha hydropower plant was commissioned in 1986 and synchronized with the Indian grid the same year, and additional capacity became available in 1988. . .


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