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

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
Infrastructure Transport

Mumbai-Ahmedabad Bullet Train Set to Launch by 2028

India’s first bullet train is set to revolutionize high-speed travel along the western corridor, with the Mumbai-Ahmedabad high-speed rail project aiming for a 2028 launch. This announcement marks a major milestone in India’s infrastructure goals, as it promises to reduce travel time between the two economic hubs from eight hours to just three.Spanning a planned 508-kilometre stretch, the corridor stands as a flagship example of Indo-Japanese collaboration in technology and engineering. Once operational, the train is expected to transform intercity mobility and place India among the select..

Next Story
Infrastructure Transport

Mumbai-Gandhinagar Train Service Enhances Passenger Capacity

The Mumbai Central–Gandhinagar Capital Vande Bharat Express has increased its passenger capacity by adding four additional AC chair car coaches to meet the growing commuter demand on one of India’s busiest business corridors. This upgrade, effective from 11 May, raised the train’s seating capacity from 1,128 to 1,440 passengers, allowing it to serve 936 more passengers daily in both directions. The increase was described as a practical measure to accommodate the surging demand on the busy Mumbai–Ahmedabad–Gandhinagar route, which regularly operates at over 150 percent seat occupancy...

Next Story
Infrastructure Urban

Delhi Plans 12 Sewage Plants to Clean Najafgarh Drain Efficiently

Delhi’s ambitious plan to improve the water quality of the Yamuna River has gained significant momentum as the Delhi Jal Board (DJB) has begun work on 12 new sewage treatment plants (STPs) aimed at reducing the volume of untreated sewage being discharged from the Najafgarh Drain.This initiative forms part of the ongoing efforts to clean the Yamuna and restore the river’s health, which has long been a critical environmental issue for the national capital. Given the alarming pollution levels in the Yamuna, experts and officials consider this project a vital step toward addressing the persist..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?