India, Bhutan ink Punatsangebhu-I power project pact

India and Bhutan have signed a landmark agreement for implementing the Punatsangebhu-I hydroelectric power project.

By Pankaj Chaudhary

Thimpu, July 28 :India and Bhutan have signed a landmark agreement for implementing the Punatsangebhu-I hydroelectric power project.

Visiting Indian External Affairs Minister Pranab Mukherjee and his Bhutanese counterpart Lyonpo Khandu Wangchuk signed the pact in the Gyelyong Tshokhang (the Planning Conference Hall) of the National Assembly in Bhutanese capital Thimphu.

The project is a run-of-the-river scheme coming up on the banks of the River Punatsangchhu, and is located between 8.50 and 18.50 kilometres downstream from the Wangdue Phodrang Bridge.

The Indian Government will fund the project with a 40 percent grant and the balance 60 percent will be provided in the form of a loan, which will attract an interest of ten percent.

The capital cost of the project is an estimated Ngultrum (Bhutanese currency) 35,148.10 million, and once completed, will provide an expected 1095-megawatt of power.

The project includes the construction of a 137-metre high concrete gravity dam, four intakes, four underground desilting chambers, a 7.5 kilometre long headrace tunnel, two vertical pressure shafts and an underground powerhouse.

A Punatsangchhu Hydroelectric Project Authority (PHPA) will be set up to oversee the construction of the project, which is expected to commence in 2008 and be completed by 2014.

A Memorandum of Understanding (MoU) for the preparation of a Detailed Project Report (DPR) was signed on September 15, 2003. WAPCOS (India) Ltd., a Government of India undertaking, prepared the DPR, and both Governments gave their approval to it in April 2007.

Both India and Bhutan have, inter alia, set themselves a target of exporting 5000 megawatt of power from Bhutan to India by 2020. The two countries have created three power project in Bhutan -Chukha (336 MW), Kurichu (60 MW) and Tala (1020 MW).

The Punatsangchhu-I project is expected to be the largest hydropower project undertaken by the two countries.

ANI