Tata Power commissions second unit in Bhutan

Indian electric utility company Tata Power on Tuesday said it has successfully commissioned the second unit of its 126 MW Dagachhu Hydro Power Corporation (DHPC) on the Dagana Dzongkhag river in Bhutan.

This is the first cross border project registered under United Nations Framework Convention on Climate Change's Clean Development Mechanism and will sell power to India, besides meeting local requirements.

"The power generated from this project will provide a much needed boost to the power market in India. We now aim to develop another new project of another 450 MW in 2015," company CEO and managing director Anil Sardana said in a statement.

DHPC is a joint-venture initiative between Tata Power and Druk Green Power Corporation, owned by the Bhutan government and has entered into a 25-year power purchase agreement with a subsidy firm of Tata Power for sale of power from the project.

"The successful commissioning of both the units of the 126 MW Dagachhu project showcases the robustness and ability to undertake big projects in Bhutan and we will continue to build the suitable atmosphere to take up similar projects," said DHPC chairman Chhewang Rinzin.

The company said through this project, India will be able to pave way for essential clean energy development process, which is a much-needed requirement for the power sector.