India and Bhutan sign concession agreement for Kholongchhu project

30 June 2020

Plans for the 600MW Kholongchhu Hydroelectric Project In Bhutan are moving forward, with the Royal Government of Bhutan and Kholongchhu Hydro Energy Limited signing a concession agreement for the project yesterday.

The agreement signing was overseen via video conference by Dr. S. Jaishankar, External Affairs Minister, Government of India and Lyonpo Dr. Tandi Dorji, Foreign Minister, Royal Government of Bhutan. Lyonpo Loknath Sharma, Minister of Economic Affairs, Royal Government of Bhutan and senior government officials including Foreign Secretaries of India and Bhutan, Secretary (Power), GoI, Ambassador of India to Bhutan and Ambassador of Bhutan to India were also virtually present at the signing ceremony.

The run-of-the-river project is located on the lower course of the Kholongchhu River in Trashiyangtse District in Eastern Bhutan. The project envisages an underground powerhouse of four 150MW turbines with water impounded by a 95m high concrete gravity dam. 

It will be implemented by Kholongchhu Hydro Energy Limited, a Joint Venture company formed between Druk Green Power Corporation (DGPC) of Bhutan and Satluj Jal Vidyut Nigam Limited (SJVNL) of India. 

The signing of the concession agreement means construction and other works can start on this first JV hydroelectric project between India and Bhutan. The project is expected to be completed in the second half of 2025.



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