Kholongchu Hydropower Incorporated
Amid public criticism over the delay in starting the project, the Kholongchu Hydropower Project is finally incorporated into a company last Friday. The 600 Megawatt project is a joint venture between the Druk Green Power Corporation (DGPC) and Satluj Jal Vidyut Nigam (SJVN) limited, India.
The project was inaugurated by the Indian Prime Minister, Narendra Modi, in June 2014. However, the public were skeptic as to why the project took so long to be incorporated and started after the inauguration.
Signing the incorporation of the company, the Minister for Economic Affairs, Lyonpo Norbu Wangchuk, said that the past one year was spent meaningfully for the project. Preliminary works like signing of shareholders’ agreement, preparing tender documents, and consulting the partner in India.
“All of these require substantial time, energy, focus and attention. And the project received attention and due care from the two companies,” said the Lyonpo.
He added that it is important for the two com- panies to forge excellent relationship which will be very crucial to execute the project. Lyonpo said that the past one year would have provided ample time to forge that relationship.
He also pointed out that while India has the ambition of “Dreams of India” to grow its Gross Domestic Product (GDP) from three trillion to 18 trillion by 2030 or 2035, Bhutan’s hydropower projects would play a significant role in realizing the power of economic dreams of India.
“It will be a win-win situation,” Lyonpo said, while India benefits from the clean energy from Bhutan, the latter is able to earn Rupee which is very much needed going by the economic situation of the day. He further noted that hydropower is the economic driver of Bhutan with its revenue earning potential which can only be augmented once the Kholongchu project is commissioned.
The conducive environment to construct hydropower projects was also highlighted by the Lyonpo.
He said that Bhutan has clear and healthy environmental laws while being able to protect ecology and environment and being able to ensure that hydropower projects do not damage our environment, they facilitate developments of projects as well.
“Our environment policy is premised on the vision that development and environment can go in harmony” said the Lyonpo.
The incorporation of the project was signed by the Lyonpo and the new Managing Director of Kholongchhu project Shri S K Shamal. Once incorporated the company will be regulated by the laws of Companies Act of Bhutan, 2000.
Kholongchu Hydro Power Project receives the certificate of Incorporation. The certificate was received by SK Samal of SJVNL and Dasho Chewang of DGPC. Kholongchu project will now officially begin the construction of 600 MW hydro project in Trashi Yangtse in East Bhutan.