REC and PFC sign pact to finance hydropower project in Bhutan, Energy News, ET EnergyWorld

New Delhi: public entities REC Ltd and To be able to Financial company (PFC) have entered into a pact with the Bhutanese company Kholongchhu Hydro Energy Ltd (KHEL) to finance a 600 megawatt project hydroelectric project in Trashiyangtse in the neighboring country.

KHEL is a 50/50 joint venture between SJVN India and Druk Green Power Corporation (Bhutan) set up to develop the 600 MW Kholongchhu hydroelectric project in eastern Bhutan, REC Ltd said in a statement Wednesday.

REC Ltd and PFC signed a memorandum of understanding on March 9, 2021 with Kholongchhu Hydro Energy Ltd to finance a 600 MW hydroelectric project in Trashiyangtse, Bhutan, according to the REC statement.

“It is proposed that the project be funded at a debt-to-equity ratio of 70:30 and as per the MoU, REC would extend a rupee term loan of Rs 2,029 crore. The remaining debt will be extended. by PFC (Rs 2,029 crore), NPPF, Bhutan (Rs 200 crore) and Bank of Bhutan (Rs 200 crore), ”he said.

REC also said that the project is being executed in accordance with an intergovernmental agreement signed between the Government of India and the Royal Government of Bhutan (RGoB) in April 2014, to undertake the implementation of four hydropower projects in Bhutan through a joint venture model at be formed by the PSUs of the two governments.

KHEL is the first joint venture between the two governments for the implementation of the 4×150 MW Kholongchhu hydropower project.

REC and PFC, both under the administrative control of the ministry of power, are non-bank financial companies in the electricity sector.

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