India and Bhutan on Tuesday inked the framework 'Inter-Governmental Agreement' concerning development of joint venture hydropower projects through the public sector undertakings (PSUs) of both countries.
The agreement was signed by Bhutan's Economic Affairs Secretary Sonam Tshering and India's Power Secretary P.K. Sinha.
Hydropower cooperation with Bhutan is a classic example of a win-win cooperation, providing clean electricity to India, generating export revenues for Bhutan, and further strengthening bilateral economic linkages between the two countries.
Three hydro-electric projects (HEPs) totaling 1416 MW, viz., the 336 MW Chukha HEP, the 60 MW Kurichu HEP, and the 1020 MW Tala HEP, are already operational in Bhutan and are supplying electricity to India.
Three more HEPs totalling 2940 MW, i.e., the 1200 MW Punatsangchu-I HEP, the 1020 MW Punatsangchu-II HEP and the 720 MW Mangdehchu HEP, are under construction, and are scheduled to be commissioned by 2018.
The agreement provides the framework for implementing four HEPs totalling 2120 MW, subject to completion of the due process of appraisal of their DPRs including techno-economic viability, on a joint venture-model.
The 600 MW Kholongchu HEP will be developed in a joint venture between SJVN Ltd. of India and Druk Green Power Corporation (DGPC) of Bhutan.
The 180 MW Bunakha HEP (with 230 MW downstream benefit from Tala, Chukha and Wangchu HEPs) will be developed in a joint venture between THDC Ltd. of India and DGPC.
The 570 MW Wangchu HEP will be developed in a joint venture between SJVN Ltd. and DGPC
The770 MW Chamkarchu HEP will be developed in a joint venture between NHPC Ltd. of India and DGPC.
The signing of the agreement will enable the commencement of the projects, strengthening hydropower cooperation, and further cementing India's strategic partnership with Bhutan.
