India Will Take 5,000 MW of Bhutan’s Hydropower

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Researched by Industrial Info Resources (Sugar Land, Texas) – India is pursuing a strategy of power cooperation with neighboring Himalayan kingdoms of Bhutan and Nepal to tap into their hydropower potential and feed India with sustainable and clean energy. An agreement was struck between India and Bhutan at the end of July, which will see the creation of an $854 million project, which will be the largest hydropower scheme to be built in Bhutan with Indian assistance. For related news release see July 12, 2007 – Nepal’s 750 MW Hydropower Project High Voltage Resource Tensions

The Indian government will finance the 1,095 MW Punatsangchu-1 run-of-river plants with a 40% grant and a 60% loan. The finance also covers the erect ion of transmission lines up to the Indo-Bhutanese border. The project includes the construction of a 137 meter high concrete gravity dam, four intakes, four underground desilting chambers, a 7.5 kilometer long headrace tunnel, two vertical pressure shafts and an underground powerhouse. A Punatsangchhu Hydroelectric Project Authority (PHOA) will be set up to oversee the construction of the project. Construction is scheduled to start in 2008 with completion by 2014.

India is committed to purchase 5,000 MW of power from Bhutan by 2020 under an agreement signed in 2006. Detailed project reports are being prepared to construct two more hydropower plants, Punatsangachu11 AND Manaduchu. Currently India is purchasing power from three projects which India helped to finance. These projects generate a total of 1,420 MW and include the 1,020 MW Tala hydropower plant which has 100% utilization of capacity and has helped meet power shortages in India’s eastern states.

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