Tata Power has formed a strategic partnership with Bhutan’s Druk Green Power Corporation Ltd (DGPC) to develop the 600 MW Khorlochhu Hydropower Project. The project is located on the Kholongchhu River in Eastern Bhutan’s Trashiyangtse Dzongkhag. The project’s clean power would assist Bhutan fulfil its growing electricity demand.
Furthermore, Tata Power will invest 40 per cent of its shares in Khorlochhu Hydro Power Limited, a Public Private Partnership Company. The anticipated project cost, including financing charges, is around Rs. 69 billion, with a development timetable of 5 years. All necessary legislative approvals are in place, allowing construction to begin immediately.
Khorlochhu Hydro Power Ltd will also enter into long-term power purchase agreements with Tata Power Trading Corporation Ltd for the export of summer surplus power to the Indian market, and with Bhutan Power Corporation Ltd (a subsidiary of Druk Holding & Investments Ltd) for the domestic sale of power in the winters.
