India allocates additional funds for Bhutan's 1,200-MW Punatsangchu 1 hydropower project

Bhutan Map

The government of India has reserved about US$286 million for interim cost escalations associated with the development of Bhutan's 1,200-MW Punatsangchu 1 hydropower project.

According to Bhutan's Ministry of Foreign Affairs, the reserve is expected to be made available by India in April.

HydroWorld.com reported that India's Union Cabinet had approved an intergovernmental agreement to assist with the Punatsangchu 1 plant in July 2007, at which point the cabinet allocated funds for a $328 million grant and a $492 million loan.

India's Water and Power Consultancy Services performed the detailed project report on the run-of-river project. A feasibility study by Japan's Electric Power Development Co. outlined a 141-meter-tall diversion dam, two 7-kilometer-long headrace tunnels, and an underground powerhouse with a head of 310 meters, and two 350-meter-long tailrace tunnels.

The project will provide surplus power to India via 400-kilovolt double-circuit transmission lines, according to preliminary studies.

Bharat Heavy Electricals Limited (BHEL) announced it had won an award to supply electro-mechanical equipment for the project in February 2010.

Punatsangchu 1 is one component of a plan announced by Bhutan in June 2008 to increase its cumulative hydropower output to 6,000 MW by 2020.

Other plants include the 600-MW Kholongchhu, 570MW Wangchhu, 770MW Chamkharchhu and 180MW Bunakha, which could also become India/Bhutan joint venture projects per a draft intergovernmental agreement also submitted for review this week.

For more news from Asia, visit here.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs