India

Deal inked for first India-Bhutan joint venture hydroelectric project

Deal inked for first India-Bhutan joint venture hydroelectric project
Prime Minister Narendra Modi during his Bhutan visit. (Twitter/PMO India/File)

A concession agreement for the first India-Bhutan joint venture hydroelectric project was signed on Monday, paving the way for commencement of its construction and other related works.

The concession agreement for the 600 MW Kholongchhu project between the Bhutanese government and Kholongchhu Hydro Energy Limited was signed in the virtual presence of External Affairs Minister S Jaishankar and his Bhutanese counterpart Tandi Dorji, a Ministry of External Affairs (MEA) statement said.

“The signing of the concession agreement will lead to commencement of construction and other works of this first joint venture hydroelectric project between India and Bhutan. The project is expected to be completed in the second half of 2025,” it said.

The 600 MW run-of-the-river project is located on the lower course of the Kholongchhu river in eastern Bhutan’s Trashiyangtse district.

External Affairs Minister S Jaishankar attends the signing ceremony via video conference in New Delhi on Monday. (ANI)

This is the first joint venture project to be implemented in Bhutan, Jaishankar said, congratulating both partners — Satluj Jal Vidyut Nigam Limited (SJVNL) and Druk Green Power Corporation (DGPC) — for it.

Describing the agreement as a “milestone”, he said the commencement of construction activities of the project will create economic and employment opportunities in Bhutan in this critical time.