The agreement for a hydroelectric project in Bhutan was signed in the presence of EAM Jaishankar

A concession agreement was signed between the Government of Bhutan and Kholongchhu Hydro Energy Limited for the 600 MW Kholongchhu (joint venture) hydroelectric project. The project is expected to be completed in the second half of 2025

June 29, 2020, 13:41 IST

New Delhi: External Affairs Minister S. Jaishankar on Monday signed a concession agreement for the 600 MW Kholongchu JV-hydroelectric project in Bhutan through video conference.

This will initiate the construction of the first joint venture hydroelectric project between India and Bhutan.

A concession agreement was signed between the Government of Bhutan and Kholongchhu Hydro Energy Limited for the 600 MW Kholongchhu (joint venture) hydroelectric project. The project is expected to be completed in the second half of 2025.

Kholongchhu Hydro Energy Limited is a joint venture formed between Druk Green Power Corporation (DGPC) of Bhutan and Satluj Jal Vidyut Nigam Limited (SJVNL) of India.

The 600 MW run-of-the-river project is located on the lower part of the Khalongchhu River in the Thrisshyangtse district in eastern Bhutan. The project envisages an underground powerhouse of four 150 MW turbines with water surrounded by a 95 m height concrete dam.

"On 29 June 2020 in Thimphu, an accommodation treaty for the 600 Megawatt Kholongchhu (Joint Venture) Hydroelectric Project was signed between Royal Government and Bhutan in the existence of the A.Jaishankar, Foreign Minister of India and Lyonpo Tandi Dorji, abroad Minister, Royal Government of Bhutan, ” as per the press release.

"Lyonpo Loknath Sharma, Minister of Economic Affairs, Royal Government of Bhutan and Foreign Secretaries of India and Senior Government Officials of Bhutan, Secretary (Power), Government of India, Ambassador of India to Bhutan and Ambassador of Bhutan to India were also present. The ceremony, which was conducted through video conferencing, added.

Jaishankar and Dhoriji emphasized the importance of hydroelectric development as an important pillar of mutually beneficial bilateral economic cooperation.

"He also recalled trust, co-operation and mutual respect, which have long characterized unique and special friendships, sharing mutual understanding and people between India and Bhutan with a shared cultural heritage and strong Is reinforced by the people, ”the statement read.

The hydropower sector is a major area of   India-Bhutan bilateral cooperation. The 720 MW Mangdechhu Hydroelectric Project was jointly inaugurated by the Prime Ministers of India and Bhutan in August 2019.

With this, four (04) hydroelectric projects of more than 2100 MW bilateral cooperation (336 MW Chuka HEP, 60 MW Kurichu HEP, 1020 MW Tala HEP and 720 MW Mangadeshu HEP) are already operational.