Hydel project: Pact with Bhutan soon

New Delhi: The Government is set to sign an agreement with Bhutan for setting up a new 1,095 MW hydel power project in that country and developing the associated transmission lines at a cost of Rs 3,514.82 crore. Speaking to newspersons, the Information and Broadcasting Minister, Mr P.R. Dasmunsi, said the project, which would be developed under the clean development mechanism (CMD) to generate carbon credits, is likely to be commissioned within seven years from the date of commencem ent of works and would supply surplus power to India. “The pact will implement the 1,095-MW Punatsangchhu-1 hydel power project and 400 KV double circuit transmission lines from the project to the Indo-Bhutan border.” He added that funding for the project would be on terms and conditions agreed between the two Governments. “Of the total amount, Rs 1,405.92 crore equivalent to 40 per cent of the estimated cost to completion, would be as grant and Rs 2,108.89 crore equivalent to 60 per cent would be loan,” he said. The loan would carry an interest rate of 10 per cent per annum and shall be repayable in 12 equal annual instalments, with the first one commencing from one year after the date of commercial operation. —