INVC,
Delhi ,
To expedite the establishment of a JV company and to start the construction activities for the 600 MW Kholongchu Hydro electric Project in Bhutan SJVN Limited and Druk Green Power Corporation (DGPC) signed a Memorandum of Understanding (MoU) at Thimpu, Bhutan on April 22, 2014. The MoU was signed by Shri R.P. Singh, CMD and Shri Dashu Chhewang Rizin, Managing Director of DGPC in the presence of Shri P.K. Sinha, Secretary Power, Govt. of India and Shri Dashu Sonam Tshering, Economic Affairs Secretary, Govt. of Royal Bhutan.
To expedite the establishment of a JV company and to start the construction activities for the 600 MW Kholongchu Hydro electric Project in Bhutan SJVN Limited and Druk Green Power Corporation (DGPC) signed a Memorandum of Understanding (MoU) at Thimpu, Bhutan on April 22, 2014. The MoU was signed by Shri R.P. Singh, CMD and Shri Dashu Chhewang Rizin, Managing Director of DGPC in the presence of Shri P.K. Sinha, Secretary Power, Govt. of India and Shri Dashu Sonam Tshering, Economic Affairs Secretary, Govt. of Royal Bhutan.
SJVN Limited and DGPC have decided to form the JV Company within three months. In the meantime it has been agreed to set up a steering committee to initiate the tasks of getting statutory clearances and to acquire land required for the project. After finalizing of the shareholders’ agreement the JV will be formally registered.
Financing for the project will be done on 70 percent loan and 30 percent equity. SJVN and the Bhutan JV Company Druk Green Power Corporation will organize 70 percent loans and invest equity of 15 percent each to make up the remaining 30 percent. The Govt. of India has already approved the financing grant for DGPC’s equity component of 15 percent in the Kholongchu hydropower project.
For the above an inter-governmental agreement was signed between Govt. of India and the Royal Govt. of Bhutan on development of four hydropower projects in Bhutan on April 22, 2014. The Government of India has agreed to develop under joint venture through public sector undertakings between the two countries, the four projects namely 700 MW Charnkharchhu, 600 MW Kholongchu, 570 MW Wangchhu, and the 180 MW Bunakha.
Under the scheme, the financing for all the projects will be done on 70 percent loan and 30 percent equity basis. The Druk Green Power Corporation (DGPC) and the Indian Public Sector companies will finance 70 percent with loans they will avail and they will invest an equity of 15 percent each to make up the remaining 30 percent. Among the four projects, construction activities on the 600 MW Kholongchhu Hydro Electric Project would commence shortly as the Government of India has already approved grant financing for DGPC’s equity component of 15 percent. For the development of 570 MW Wangchhu HEP, the activities will commence upon Govt. of India’s approval of grant financing for the DGPC’s equity component and approval of its DPR.
