600 MW Hydroelectric Project at Bhutan shall create opportunity for small contractors from Bihar, Jharkhand and WB
REC Limited on 10th March, Wednesday said it along with Power Finance Corporation has signed Memorandum of Understanding (MoU) with Kholongchhu Hydro Energy (KHEL) for financing of 600 MW Hydroelectric Project at TrashiYangtse, Bhutan.
Kholongchhu Hydro Energy Limited is a 50:50 JV Company of SJVN Limited and Druk Green Power Corporation Limited, Bhutan. The project is being executed as per an inter-governmental agreement signed between India and Bhutan in April 2014 to undertake implementation of four Hydroelectric Projects in Bhutan through a joint venture model to be formed by PSUs of the two Governments, an official statement said.
Kholongchhu Hydro Energy Limited is the first Joint Venture Company being undertaken between the two governments for implementation of 4x150 MW Kholongchhu Hydro Electric Project.
KHEL has signed a concession agreement with the Bhutan Government dated 29.06.2020 for a concession period of 30 years. The project is proposed to be funded in debt-equity ratio of 70:30 and as per the MoU, REC would be extending Rupee Term Loan of Rs 2,029 crore.
This Hydroelectric power project will create many opportunity for small contractors from the states of Jharkhand, WB and Bihar, specialised in the field of Civil construction, Mechanical construction activities like fabrication, erection, testing, commissioning and Electrical erection, testing commissioning activity etc. During project implementation, civil construction will start first followed by Mechanical and Electrical activity.