Public sector hydro-power companies NHPC, SJVN and THDC will ink deals with Bhutan government-owned power companies for implementation of four hydel projects, including 770-MW Chamkharchhu-I under a joint-venture ( JV) route, on April 22.
Sources say power secretary PK Sinha will lead the Indian delegation which would include joint secretary in charge of hydropower in the ministry Mukesh Jain, and these PSU chiefs. The Cabinet has already given a go-ahead for the JV for these projects, which would entail an estimated investment of R25,000 crore.
These projects will be financed in 7:3 debt-equity ratio as per the industry norm and equity will be shared equally by Indian PSUs and the Bhutan company. A senior government official said, ?PSUs would contribute their equity share from internal resources, while grants will be provided by the Centre to finance Bhutanese equity participation in these projects.? Debt will be raised by JVs from the market. Surplus power from these projects will be exported to India, which should help lift the falling share of hydropower in country?s energy mix.
Meanwhile, the power ministry had also envisaged setting up five 800-KV transmission lines with capacity to evacuate 6,000-7,000 MW power from Bhutan. The 600-MW Kholongchhu, 570-MW Wangchhu and 180-MW Wangchu are other hydel projects in Bhutan for which JV deals will be signed. Kholongchhu and Wangchhu have been allotted to SJVN, while NHPC and THDC got Chamkharchhu and Wangchu, respectively.
Bhutan has a potential to generate 30,000-MW hydro power. As per an agreement signed with the Bhutan government in 2006, India had to generate 10,000 MW there, of which, about 1,400 MW has been developed with the help of funds provided by the ministry of external affairs from its budget. The MEA has now decided to shift to the JV system and involve PSUs in implementation of hydel projects as it is not in a position to meet financing requirements of these projects from its own resources.
Under the India-Bhutan hydro-power cooperation deal, three projects Tala, Chukha and Kurichu have been commissioned, while Punatsangchhu-I and II ( with1,200 MW and 990 MW capacities respectively) and 720 MW Mangdechu is under implementation.