PFC Sanctions Rs 48 Billion Loan for Bhutan Hydro Project

01 Oct 2025 CW Team

Bhutan-based Kholongchhu Hydro Power Ltd (KHPL) has signed a Rs 48.3 billion term loan agreement with state-owned Power Finance Corporation (PFC) to fund its 600 MW Kholongchhu Hydropower Project. The deal also includes a standby credit facility of Rs 9.5 billion.

KHPL is a strategic partnership with Druk Green Power Corporation Ltd (DGPC) holding 60 per cent and Tata Power Company Ltd holding 40 per cent. The total project cost is estimated at Rs 69 billion, including financing charges, with commissioning targeted for 2029–30.

This landmark deal marks PFC’s first cross-border financing in Bhutan and strengthens clean energy cooperation between India and Bhutan. Under the agreement, PFC will act as the sole lender.

Located in Trashiyangtse Dzongkhag, the project is expected to generate 2,524 million units of electricity annually. It will help meet Bhutan’s winter power demand while allowing surplus electricity exports to India during summer months.

Construction is already underway, with civil contracts awarded and works commenced on 1 January 2025. Power evacuation will be facilitated by a 145 km, 400 kV double-circuit transmission line connecting the project to the Goling pooling station, to be built by Bhutan Power Corporation Ltd.

DGPC, a subsidiary of Druk Holding and Investments Ltd, currently operates 3,473 MW of hydropower capacity. With an ambitious vision of adding 15,000 MW of hydropower and 5,000 MW of solar over the next decade, DGPC remains central to Bhutan’s clean energy strategy.

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..