Bhutan-based Kholongchhu Hydro Power Ltd (KHPL) has signed a term loan agreement worth Rs 4,829 crore with state-owned Power Finance Corporation (PFC), according to a PTI report.
KHPL is a strategic partnership with 60 per cent shareholding by Druk Green Power Corporation Ltd (DGPC) and 40 per cent by Tata Power Company Ltd. The entity is developing the 600 megawatt (MW) Kholongchhu Hydropower Project in Bhutan, which carries an estimated cost of around Rs 6,900 crore, inclusive of financing charges.
The project is expected to be commissioned in 2029-2030. Along with the loan agreement, KHPL has also secured a standby credit facility of Rs 950 crore, as confirmed by DGPC.
The hydropower project is set to play a key role in strengthening Bhutan’s renewable energy base while also furthering bilateral cooperation with India in the power sector.
