Lok Sabha Question No. 1639 (UNSTARRED), answered on 2021-02-11
Subject: Mangdechhu Hydroelectric Project
Ministry: POWER
Asked by: Subhash Ramrao Bhamre, Supriya Sadanand Sule, Amol Ramsing Kolhe, Sunil Dattatray Tatkare, DNV Senthilkumar. S., Kuldeep Rai Sharma

## GOVERNMENT OF INDIA

## MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.1639 TO BE ANSWERED ON 11.02.2021

## MANGDECHHU HYDROELECTRIC PROJECT

1639.  DR. SUBHASH RAMRAO BHAMRE:

SHRIMATI SUPRIYA SULE: DR. AMOL RAMSING KOLHE: SHRI SUNIL DATTATRAY TATKARE: DR. DNV SENTHILKUMAR S.:

SHRI KULDEEP RAI SHARMA:

Will the Minister of POWER be pleased to state:

- (a) whether  bilateral  Inter-Governmental  Agreement  for  implementation  of  the  720 MW  Mangdechhu  Hydroelectric  Project  in  Bhutan  which  was  under  construction  has started power production and if so, the details thereof and if not, the reasons therefor;

- (b) whether India and Bhutan signed the first Indo-Bhutan joint venture hydroelectric project and if so, the details of the project along with the main objectives thereof;

- (c) the  details  of  ratio  of  funds  to  be  provided  by  India  and  Bhutan  for  the  said project;

- (d) whether surplus electricity generated through the project is likely to be supplied to India and if so, the details thereof; and

- (e) the time by which the work on the said project will be started and completed?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, NEW & RENEWABLE ENERGY AND THE MINISTER OF STATE FOR SKILL DEVELOPMENT & ENTREPRENEURSHIP

( SHRI  R.K. SINGH)

- (a) : Yes Sir, the 720 MW Mangdechhu Hydroelectric Project in Bhutan has been commissioned  during  the year 2019-20 and has started power  production.  The generation from the project is as under:-

Unit-I (180 MW) - 1414.02 MU

Unit-2 (180 MW) - 1190.18 MU

Unit-3 (180 MW) - 693.06 MU

Unit-4 (180 MW) - 1327.56 MU

Cumulative generation till 2 nd  February, 2021 is 4624.82 MU.

……….2.

(b) : An Inter-Governmental agreement was signed between the Royal Govt. of Bhutan (RGoB) and Govt. of India (GoI) on 22.04.2014 for development of following four Joint Venture (JV) Hydro Power Projects through the Public Sector Undertakings of the two Governments:

| JV Partners                                         | Name of the project                           |
|-----------------------------------------------------|-----------------------------------------------|
| SJVN Ltd (CPSU of GoI) and DGPC (a PSU of RGoB)     | Kholongchhu & Wangchhu Hydroelectric Projects |
| NHPC Ltd (CPSU of GoI) and DGPC (a PSU of RGoB)     | Chamkharchhu-I Hydroelectric Project          |
| THDC (I) Ltd (CPSU of GoI) and DGPC (a PSU of RGoB) | Bunakha Reservoir Hydroelectric Project       |

Of  the  above,  the  Concessionaire  Agreement  for  600  MW  Kholongchhu Hydro Electric Project in Bhutan, for implementation in Joint Venture (JV) mode, was signed on 29.06.2020 between the Royal Govt. of Bhutan (RGoB) and Kholongchu Hydro Electric Limited (a Joint Venture between SJVN Ltd., a CPSU under Ministry of Power and DGPC (Druk Green Power Corporation), a PSU of RGoB).

The  600  MW  Kholongchhu  Hydro  Electric  Project  is  a  run-of-river  project located  on  the  Kholongchhu  River  in  Trashiyangtse  District  in  North-Eastern  Bhutan. The project will generate 2568.52 Million Units (MU) in a 90% dependable year.

- (c) : SJVN  and  DGPC  own  equal  shareholdings  (50:50)  in  the  Joint Venture Company  (JVC).    The  project  shall  be  financed  under  a  debt-equity  ratio  of  70:30. Government of India shall provide DGPC's share of equity i.e. 15% in the Joint Venture Company as grant and balance 15% equity share shall be contributed by SJVN Ltd.
- (d)  : Yes  Sir,  the  surplus  electricity  generated  through  the  project  shall  be supplied  to  India  by  the  Joint  Venture  Company.  As  per  the  Inter-Governmental agreement signed between the Royal Govt. of Bhutan (RGoB) and Govt. of India (GoI) on 22.04.2014 regarding development of Joint Venture Hydro Power Projects, 12% of the saleable  energy  from  the  project  (generated  energy  net  of  power  plant  auxiliary consumption) is to be given to RGoB as Royalty Energy during the first 12 years of the Commercial Operation of the project and 18% of the power thereafter till the end of the concession period.

Of the remaining energy, 70% of the saleable energy net of royalty energy is to be sold under long term Power Purchase Agreement route and the balance through market  mechanism.  However,  the  RGoB  would  have  the  first  right  of  refusal  on  the saleable energy and the energy over and above required for use of Bhutan would be sold to the beneficiaries in India by the JV company.

(e) : The Kholongchhu H.E. project is scheduled for commissioning in a period of  59  months  from  the  award  of  works.  The  pre-construction  activities  of  the  project have been completed.

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