New Delhi: SJVN Limited’s Joint Venture (JV) Kholongchhu Hydro Electric Limited (KHEL) has signed a concession agreement (CA) with the Ministry of Economic Affairs, Government of Bhutan in Shimla on Monday. The agreement has been signed by KHEL's Managing Director (MD) Sanjay Garg on behalf of SJVN and Karma P Dorji, Director Department of Hydropower & Power Systems (DHPS), Government of Bhutan on behalf of Bhutan. The agreement has been signed in presence of Dr S Jaishankar (External Affairs Minister, India), Dr Tandi Dorji (Foreign Minister, Bhutan) and SJVN Limited's Chairman & Managing Director (CMD) Nand Lal Sharma, who attended the function through a video conference.
With the signing of this agreement, the issue of power sale between JV partners stands resolved which also bears the consent of both the governments (India and Bhutan). While speaking on the occasion, Sharma said that SJVN is implementing 600 MW Kholongchhu Hydro Electric Project in Bhutan in Joint Venture with Druk Green Power Corporation (DGPC). An inter-governmental agreement between the government of Bhutan and the government of India for implementation of Kholongchhu HEP was signed on April 22, 2014. The foundation stone for the project was laid by the Prime Minister of India Narendra Modi on June 16, 2014.
Sharma further informed that Kholongchhu HEP with the proposed capacity of 600 MW on the river Kholongchhu in Bhutan will generate 2569 MU annually. The estimated cost of the project is Rs 4632.80 crore at March 2019 price level.
Sharma said that this project will be a major milestone in the journey of SJVN towards achieving installed capacity of 5000 MW by 2023, 12000 MW by 2030 and 25000 MW by the year 2040.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)