Mangdechhu hydropower project

India’s largest electricity trader PTC India Ltd will buy surplus power from Bhutan’s Druk Green Power Corp Ltd for the 720-megawatts (MW) Mangdechhu hydropower project.

Prime Minister Narendra Modi inaugurated the major hydropower project during his two-day visit on Saturday and Sunday to the neighbouring country.

“PTC India Ltd (PTC) signed Power Purchase Agreement (PPA) with Druk Green Power Corporation Limited (DGPC, A Royal Bhutan Govt. Company) for purchase of surplus power from 720 MW Mangdechhu Hydro Electric Project in Bhutan for 35 years,” PTC said in a statement on Monday evening.

The firm said that the Government of India has designated PTC as the nodal agency from Indian side to purchase this power from Bhutan.

Electricity from the run-of-river power plant built on the Mangdechhu River in Trongsa Dzongkhag District of central Bhutan will be supplied to Assam, Bihar, Odisha and West Bengal.

“The project is funded by a mix of debt and grant from the government of India. The project is estimated to generate 2,923 GWh (2.923 BUs) of electricity and offset 2.2Mt of CO2 a year. The generated energy will be transmitted to India through Jigmeling and Salakati Sub-station,” the statement added.

Bhutan, strategically located between India and China, has the potential to generate 30,000 MW of hydropower, but has a capacity of just 1,490 MW.

According to the Indian embassy in Thimphu, hydropower exports provide more than 40% of Bhutan’s domestic revenues, and constitute 25% of its gross domestic product (GDP).

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