India-Bhutan sign agreements on Hydroelectric Projects

On June 29, 2020, India and Bhutan signed an agreement on a Hydroelectric power project. The agreement was signed between the Kholongchhu Hydro Energy Limited and Royal Government of Bhutan in the virtual presence of Indian External Affairs Minister S Jaishankar.


Kholongchhu Hydro Energy Limited is a joint venture between Satluj Jal Vidyut Nigam Limited of India and Druk Green Power Corporation of Bhutan. The project is to be completed by 2025.

About the Project

The project is to construct a 600 MW of hydroelectric power station. It envisages an underground power house that will accommodate four 150 MW turbines impounded by a concrete gravity dam (95m high).

The project is to be constructed across Kholongchhu river.


Hydropower is the flagship area in the bilateral cooperation between India and Bhutan. In August 2019, the 720 MW Mangdechhu Hydroelectric power projects was inaugurates. In all there are four hydroelectric power projects of bilateral cooperation are operating in Bhutan. This totals to 2100 MW in all.

Satlaj Jal Vidyut Nigam Limited

It is a mini Ratna Public Sector Unit that was established in 1998. It is a joint venture of the Government of India and Government of Himachal Pradesh. The company has commissioned hydroelectric power of more than 2000 MW. This includes wind and solar power as well. It has implemented power projects in the states of Gujarat, Maharashtra, Uttarakhand, Bihar and Himachal Pradesh. Also, it has implemented projects in Bhutan and Nepal.


Leave a Reply