Khorlochhu Hydro Power Secures ₹48.29 Billion Loan from Power Finance Corp to Energize Bhutan’s Future

In a major boost to regional clean energy development, Khorlochhu Hydro Power Limited (KHPL) has signed a ₹48.29 billion loan agreement with Power Finance Corporation (PFC), India’s leading power sector financier. The funding will support the construction of the 600 MW Khorlochhu Hydropower Project in Bhutan’s Trashiyangtse district.

 

Key Highlights:

 

The project is a joint venture between Druk Green Power Corporation (DGPC) and Tata Power, with DGPC holding a 60% equity stake and Tata Power investing 40%.

 

The total estimated cost of the project stands at ₹69 billion, including financing charges, with a five-year construction timeline.

 

The loan agreement with PFC marks a critical milestone in mobilizing resources for the project, which is expected to enhance Bhutan’s energy security and contribute to India’s renewable energy goals.

 

Once operational, the Khorlochhu plant will help Bhutan meet its growing winter electricity demand and export surplus power to India during peak summer months.

 

The project spans four gewogs and includes major infrastructure components such as a dam site, head race tunnel (HRT), and powerhouse, all designed with modern sustainability practices.

 

Tata Power’s involvement reflects its broader commitment to clean energy and regional collaboration, building on its existing partnership with DGPC in the Dagachhu Hydropower Plant.

 

This strategic alliance underscores the growing Indo-Bhutan energy cooperation and the shared vision for a greener South Asia.

 

Sources: Khorlochhu Hydro Power Limited, Tata Power Media Release, Economic Times.