Concession Agreement Signed between India & Nepal for Joint Venture Hydroelectric Project

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On 29th June 2020, a concession agreement was signed between the Kholongchhu Hydro Energy Limited and the Royal Government of Bhutan. The Concession Agreement provides the right to Kholongchhu Hydro Energy Limited to operate the Kholongchhu Hydroelectric Project within the jurisdictions of the Bhutanese Government.

The Concession Agreement signing was conducted at Bhutan’s capital city Thimphu. The Agreement signing was attended virtually by the Minister of External Affairs of India Dr. S. Jaishankar.

Kholongchhu Hydroelectric Project

The project will be located on the Kholongchhu River in Eastern Bhutan’s Trashiyangtse District. The run of the river Hydroelectric Project will of 600 MW and is expected to be completed by the second half of 2025.

For the implementation and development of the Hydroelectric project, a joint venture between Bhutan’s Druk Green Power Corporation and India’s Satluj Jal Vidyut Nigam Limited was formed on 12th June 2015. The joint venture was named as Kholongchhu Hydro Energy Limited.

India-Bhutan Bilateral Hydropower Projects

With the signing of the concession agreement, construction work at the Kholongchhu Hydroelectric Project will begin. This is the 5th Hydroelectric project under bilateral ties between the Governments of India and Bhutan.

Prime Minister Narendra Modi had inaugurated the Mangdechhu Hydroelectric project in August 2019. The Mangdechhu Hydroelectric Project is of 720 MW. The Tala Hydroelectric Project is the largest Hydropower project in Bhutan with 1020 MW. Tala Hydroelectric Project is operational since 2007 and was financed by India through grants.

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