The government of India has approved Rs. 17.65 billion for the cost escalation of the Punatshangchu Hydropower Project I. The Indian government will release the amount in April after the internal procedures are completed. This was announced during the bilateral meeting between the Prime Ministers of Bhutan and India held on the sidelines of the 3rd BIMSTEC summit held in Myanmar.
India’s Prime Minister Dr. Manmohan Singh also conveyed the government of India’s approval of the draft intergovernmental agreement between Bhutan and India for the development of joint venture hydropower projects.
The four hydropower projects identified under the agreement are the 600 megawatt kholongchhu project, the 570 megawatt Wangchhu, the 770 megawatt Chamkharchhu and 180 megawatt Bunakha.
Works on kholongchhu project will start as soon as the intergovernmental joint venture agreement is signed between the two countries. The draft agreement is expected to be signed soon.
Rs. 8.5 billion commitment for SDP
Meanwhile, the Indian Government has committed Rs. 8.5 billion to Small Development Projects (SDPs) in the 11th Five Year Plan. The first meeting of the Project’s Committee was held today in Thimphu. The Committee has two representatives from the Royal Government and two from the Indian Embassy in Bhutan.
The Committee reviewed the project activities of the last plan. During the meeting the Committee approved 59 projects amounting to over 1.8 billion ngultrum, 39 are to be implemented by local governments. Twenty others will be taken up by the central government agencies.
The committee will meet again in September this year.
