About Us

The Kholongchhu Hydro Energy Limited has been registered under the companies Act of Kingdom of Bhutan, 2000 on 12th June 2015 for the development of 600 MW Kholongchhu Hydro Electric Project in eastern Bhutan. The earlier Pre-Feasibility Study for the Project prepared by IBRD & Dept of Power, Bhutan, under Bhutan Power System Master Plan, in the year 1993 envisaged the proposal to have the Project with an installed capacity of 290 MW. However, the Updated Power System Master Plan of Bhutan (2004) revised the installed capacity of the Project to 486 MW. Dam site was proposed at location named D-1 with river bed EL. 1158 m. The height of the concrete dam was 51 m above deepest foundation.

The Government of India, to further strengthen the bilateral cooperation in the area of Hydro Power Development in Bhutan, has allocated Kholongchhu HEP in Bhutan, through the Secretary (Power), Ministry of Power to SJVN, a GoI PSU for the preparation of a Detailed Project Report. The DPR was prepared and submitted by SJVN well with in schedule time.

The project is located at the lower course of Kholongchhu just before its confluence with Drangmechu (Gongrichu) in Trashiyangtse District of Bhutan. The diversion site is located at Latitude 27º 32’ 50” & Longitude 91º 30’ 49” E.

The nearest broad gauge railway station is Rangia (Assam), India about 270 km from Dam site. The nearest international airport is at Guwahati (India) about 320 km and Paro, airport in Bhutan is located at a road distance of 620 Km from dam site. From Rangia / Guwahati the project is approachable by road via Samdrup Jongkhar (Border town of India/Bhutan), Trashigang (Distt. Headquarter) and Chazam Bridge (junction of Trashigang - Thimpu road). The approximate distance of different locations from Guwahati is as under:

  Guwahati to Samdrup Jongkhar/Daranga    100 Km 
 Samdrup Jongkhar to Trashigang    180 Km
 Trashigang to Chazam    14 Km
 Chazam to Power House Location    10 Km
 Chazam to Duksum    15 Km
 Duksum to Dam Site Location    17 Km
 Duksum to Trashiyangtse    25 Km


Inter Government Agreement:

The Inter Governmental (IG) Agreement between GoI and RGoB for the development of four joint venture hydro electric projects including 600 MW Kholongchhu Hydro Electric Project in eastern Bhutan through the Public sector undertakings of both the governments was signed on 22nd April 2014 .

The agreement was signed by Mr. Pradeep Kumar Sinha, Secretary, Ministry of Power and  Mr. Sonam Tshering, Secretary, Ministry of economic affairs on behalf of the GoI and RGoB respectively at Thimphu.

JV agreement:

Subsequently the MoU between SJVN from GoI and DGPC from RGoB for the     Pre construction activities of KHEP was signed on 23rd April 2014 .

The agreement was signed by Mr. R.P.Singh, CMD, SJVN and Dasho Chhewang Rinzin, MD, DGPC at Thimphu.


The share holder agreement is to be signed before the registration of the JV Company in Bhutan, wherein SJVN and DGPC shall have the equal holding.

Concession period:
The concession period for the JV project shall be 30 years from the date of commercial operation. At the end of the concession period, the entire project shall be transferred and vested in RGoB at no cost in good running condition.

Royalty energy:

The JV Company shall provide 12% of the saleable energy to the RGoB free of cost as Royalty during the first 12 years of commercial operation and thereafter 18% till the end of concession period.

Financing of the Project:

The project shall be financed under a debt equity ratio of 70:30. The debt shall be raised on the JVC. SJVN shall ensure the raising of loan. The project assets shall be mortgaged.

The GoI shall provide DGPC’s share of equity in the JV company including ATS of the project as grant.