Bhutan's Druk Green Power is scouting for a joint venture partner to develop the 118 MW Nikachu hydel project and electricity generated from the plant will be supplied to India.
The company is owned by Bhutanese government through Druk Holding & Investments.
According to Druk Green, 80 per cent of electricity generated would be exported to India by way of a Power Purchase Agreement (PPA) while the rest 20 per cent would be sold through merchant route in India.
The project is to be implemented through the special purpose vehicle Tangsibji Hydro Energy Ltd (THyE).
"Druk Green now intends to dilute 26 per cent of its equity stake in THyE by selecting a joint venture partner to develop and operate the Nikachu Hydropower Project," as per the notice inviting global tenders in this regard.
Pre-construction activities are expected to start from October and the project's financial closure is anticipated to be achieved by December this year.
"The project is a 118 MW run-of-the-river scheme... 80 per cent of the net saleable energy is proposed to be exported to India through a long-term Power Purchase Agreement and the remaining 20 per cent is proposed to be sold through merchant route in India," the notice said.
It is to be set up on the Nikachhu river, a tributary of Mangdechhu river, in the central region of Bhutan.
Earlier this week, leading power trading firm PTC India had said that it would purchase electricity from the proposed Nikachhu plant.
"In July 2014, the company received LOI from Tangsibji Hydro Energy Ltd (ThyE), Bhutan for purchase of power from their 118 MW Nikachhu power plant in Bhutan. The project is expected to get commissioned in 2019," PTC India Chairman and Managing Director Deepak Amitabh had said.
