REC Limited, the Navratna company under the Ministry of Energy, and Power Finance Corporation Limited signed a memorandum of understanding on March 9, 2021 with Kholongchhu Hydro Energy Ltd. (KHEL) for the financing of the 600 MW hydroelectric project in TrashiYangtse, Bhutan.
REC Limited, the Navratna company under the Ministry of Energy, and Power Finance Corporation Limited signed a memorandum of understanding on March 9, 2021 with Kholongchhu Hydro Energy Ltd. (KHEL) for the financing of the 600 MW hydroelectric project in TrashiYangtse, Bhutan. KHEL is a joint company of SJVN (India) and Druk Green Power Corporation Limited (Bhutan) established with a 50/50 shareholding model for the development of the 600 MW Kholongchhu hydroelectric project in eastern Bhutan. The MoU was signed in the presence of Sh. Sanjay Malhotra, CMD – REC, Sh. RS Dhillon CMD – PFC, Sh. NL Sharma, CMD – SJVNL and Sh. Yeshi Wangdi President KHEL. From REC Limited, Sh. SK Gupta, Director (Technical), Sh. Ajoy Choudhury, Director (Finance) and Sh. TSC Bosh, Executive Director were also present along with other senior officers who joined virtually.
The project is implemented in accordance with an intergovernmental agreement (IG) signed between the government. of India and the royal government. of Bhutan (RGoB) in April 2014 to undertake the implementation of four hydropower projects in Bhutan through a Joint Venture (JV) model that will be formed by the PSUs of the two governments. Kholongchhu Hydro Energy Limited (KHEL) is the first joint venture between the two governments for the implementation of the 4×150 MW Kholongchhu hydroelectric project. KHEL signed a concession agreement with the royal government. of Bhutan dated 29.06.2020 for a concession period of 30 years. It is proposed that the project be funded at a debt ratio of 70:30 and as per the MoU, REC would extend the Rs. 2029 crore term loan. The debt balance will be extended by PFC (Rs. 2029 Crore), NPPF, Bhutan (Rs. 200 Crore) and Bank of Bhutan (Rs. 200 Crore).