PFC, REC sign up for Bhutan hydro project
POWER & RENEWABLE ENERGY

PFC, REC sign up for Bhutan hydro project

State-owned companies Power Finance Corporation (PFC) and REC Ltd and have inked a pact with Bhutan based Kholongchhu Hydro Energy Ltd (KHEL) to finance a 600 megawatt (MW) hydroelectric project at Trashiyangtse in Bhutan.

KHEL is a 50-50 joint venture (JV) between Druk Green Power Corporation (Bhutan) and SJVN India, set up for developing the 600 MW Kholongchhu hydroelectric project in eastern Bhutan.

PFC and REC Ltd signed a memorandum of understanding (MoU) with KHEL, for the project on 9 March 2021.

In a statement to the media, REC said that the project is proposed to be funded in a debt equity ratio of 70:30, and as per the MoU, REC would extend a rupee term loan of Rs 2,029 crore. The balance debt shall be extended by PFC (Rs 2,029 crore), National Pension and Provident Fund (NPPF), Bhutan (Rs 200 crore), and Bank of Bhutan (Rs 200 crore).


4th Indian Cement Review Conference 2021

17-18 March 

Click for event info


REC also said the project is being executed as per an inter-governmental agreement signed between the Government of India (GoI) and the Royal Government of Bhutan (RGoB) in April 2014 to undertake the implementation of four hydroelectric projects in Bhutan through a JV model to be formed by PSUs of the two governments.

KHEL is the first JV being undertaken between the two governments for implementing the 600 MW Kholongchhu hydroelectric project.

PFC and REC, both under the administrative control of the Ministry of Power (MoP), are non banking financial companies in the power sector.

Image: Tala hydroelectric project, Chhukha, Western Bhutan


Also read: India signs up to boost infra projects in Maldives

Also read: Efforts underway to operationalise infra links with CMLV countries

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

State-owned companies Power Finance Corporation (PFC) and REC Ltd and have inked a pact with Bhutan based Kholongchhu Hydro Energy Ltd (KHEL) to finance a 600 megawatt (MW) hydroelectric project at Trashiyangtse in Bhutan. KHEL is a 50-50 joint venture (JV) between Druk Green Power Corporation (Bhutan) and SJVN India, set up for developing the 600 MW Kholongchhu hydroelectric project in eastern Bhutan. PFC and REC Ltd signed a memorandum of understanding (MoU) with KHEL, for the project on 9 March 2021. In a statement to the media, REC said that the project is proposed to be funded in a debt equity ratio of 70:30, and as per the MoU, REC would extend a rupee term loan of Rs 2,029 crore. The balance debt shall be extended by PFC (Rs 2,029 crore), National Pension and Provident Fund (NPPF), Bhutan (Rs 200 crore), and Bank of Bhutan (Rs 200 crore).4th Indian Cement Review Conference 202117-18 March Click for event info REC also said the project is being executed as per an inter-governmental agreement signed between the Government of India (GoI) and the Royal Government of Bhutan (RGoB) in April 2014 to undertake the implementation of four hydroelectric projects in Bhutan through a JV model to be formed by PSUs of the two governments. KHEL is the first JV being undertaken between the two governments for implementing the 600 MW Kholongchhu hydroelectric project. PFC and REC, both under the administrative control of the Ministry of Power (MoP), are non banking financial companies in the power sector. Image: Tala hydroelectric project, Chhukha, Western BhutanAlso read: India signs up to boost infra projects in Maldives Also read: Efforts underway to operationalise infra links with CMLV countries

Next Story
Real Estate

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Next Story
Infrastructure Transport

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Next Story
Infrastructure Transport

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?