NHPC to finalise JV for Bhutan project

State-run NHPC Ltd along with the Bhutan government expects to soon finalise details of a joint venture company, to be set up for developing 770-Mw Chamkharchhu-1 hydro power project in the neighbouring nation. NHPC would have 51 per cent shareholding in the joint venture entity while the remaining stake would be with a Bhutan government entity, a company official said. According to the official, discussions have already started and finer details of the joint venture is expected to be finalised soon. At present, the Chamkharchhu-1 is expected to cost more than Rs 3,500 crore and the expense could go up depending on the geological conditions, he added.

The project would be funded on a debt to equity ratio of 70:30. Out of the total debt portion, around 51 per cent would come from NHPC and the remaining from Bhutan entity. The draft of the Detailed Project Report (DPR) was submitted to Indian and Bhutanese governments by NHPC in March 2012. "About 20 per cent of the electricity generated from the project would be utilised in Bhutan and the rest would be available for India," the official said.

The Chamkharchhu-1 project would be implemented under Build-Own-Operate-Transfer (BOOT) mode. In addition, NHPC has submitted the Project Feasibility Reports for projects in Kuri Gongri Reservoir in Bhutan. The PFRs were submitted to Indian and Bhutanese governments in May this year. The company is also providing design and engineering consultancy services for the 720 MW Mangdechhu hydro power project in Bhutan. NHPC operates 14 hydro projects having an installed capacity of 5,295 MW. Another ten projects with total capacity of 4,502 MW are under construction.