India and Bhutan have signed an agreement that will see the countries jointly develop four hydropower projects in Bhutan with a combined capacity of 2120MW.
The intergovernmental agreement was signed on 22 April and allows development to commence on the projects, subject to appraisal of their detailed project reports, including techno-economic viability.
Each of the projects will be developed by an Indian company in conjunction with Druk Green Power Corporation (DGPC) of Bhutan.The 570 MW Wangchu and 600 MW Kholongchu will involve SJVN Ltd, while THDC Ltd will help develop the 180MW Bunakha project (which will raise to 230MW with the downstream benefit of other hydro schemes) and NHPC Ltd is to help build the 770MW Chamkarchu project.
India has regularly cooperated with Bhutan in the development of hydropower schemes. Three projects - the 336MW Chukha, 60MW Kurichu and 1020MW Tala projects - are already operational in Bhutan and are supplying electricity to India. Three more projects totalling 2940MW - the 1200MW Punatsangchu-I,1020MW Punatsangchu-II and 720MW Mangdehchu - are currently under construction and are scheduled to be commissioned by 2018.
