Indian state-owned Bharat Heavy Electricals Limited (BHEL) has received a contract from Bhutan’s Mangdechhu Hydroelectric Project Authority (MHPA) for setting up of a 720 MW hydro power plant. The estimated investment for a project such as this is nearly Rs.750 crore.
The contract includes manufacturing, supplying, erecting and commissioning of equipment for the MHPA. The project, set up through an agreement between the Royal Government of Bhutan and the Indian government, is valued at Rs. 594 crore. Furthermore, the Balance of Plant, which includes coal and ash-handling plants, will bring the value to nearly Rs. 720 crore.
Bhutan serves as BHEL’s key export territory where the company has successfully installed its equipments in three hydroelectric projects. These projects account for 95% of the total power generation in Bhutan. In addition, the contract would benefit the SME sector in India. The contract also specifies that the Bhopal unit of BHEL will manufacture Pelton turbines and generators with a capacity of 170 Megawatts. The project is expected to bridge the gap between India and Bhutan and will help Bhutan in entering an agreement with India.