Friday, June 6, 2025
  • Contact Us
  • About BBS
  • Privacy & Policy
ENG
DZO
BBSCL Logo
  • Home
  • Business
  • Politics
  • Sports
  • Education
  • More
    • Announcement
    • Audience Survey Report
    • Programme
    • Radio Dzo-Channel Schedule
    • Radio Mix-Channel Schedule
Radio Live
No Result
View All Result
BBSCL logo
  • Home
  • Business
  • Politics
  • Sports
  • Education
  • More
    • Announcement
    • Audience Survey Report
    • Programme
    • Radio Dzo-Channel Schedule
    • Radio Mix-Channel Schedule
No Result
View All Result
BBSCL logo
Radio LIVE

DGPC’s BBB rating from Indian Bank adds cost to Bhutan renewable energy project

November 12, 2024
in Other Stories, Technology
Reading Time: 2 mins read
0
0
SHARES
123
VIEWS
Share on FacebookShare on Twitter

Bhutan has ambitious goals in the renewable energy sector, aiming to generate 20,000 megawatts of hydro and solar energy by 2040. However, securing the necessary financing for these targets is an increasing challenge. Bhutan has primarily relied on India for funding, but rising lending costs from Indian commercial banks are proving to be a barrier. This issue was highlighted at the recent Bhutan-India Renewable Energy Roundtable meeting.

The Druk Green Power Corporation (DGPC) said that, independently, it could achieve a AAA rating, which would facilitate access to finance at lower interest rates.

However, Indian commercial banks currently assign DGPC a BBB rating, indicating that they consider lending to DGPC relatively risky.

As a result, even if loans are secured, DGPC faces slightly higher interest rates than higher-rated companies.

Initially, Bhutan funded its hydropower projects through grants from the Asian Development Bank and the Indian government.

However, with Bhutan now investing heavily in various renewable energy projects, access to finance has become critical.

In 2015, the State Bank of India provided two and a half billion rupees for the construction of the Nikachhu Hydropower Project.

Recently, DGPC signed another loan agreement with the same bank for 14 billion rupees, at an interest rate exceeding 10 per cent.

According to DGPC, lower interest rates would not only benefit the corporation but also reduce energy tariffs for consumers in both Bhutan and India.

Ugyen Namgyal, Director of Corporate Services at Druk Green Power Corporation said “Currently, for the purpose of the credit rating that we get from India, DGPC is triple B rated. So, there is a difference of, in the interest rate, anywhere between the ranges of 300 to 400 basis points.”

At the roundtable meeting, DGPC suggested that it should receive a higher credit rating, comparable to Indian companies.

Ugyen Namgyal said “And the other thing was related to tenure. So, infrastructure financing normally, if you look at the project, hydropower project, construction period anywhere ranges from 4 to 10 years. So, then the loan tenure is, commercial loans are slightly shorter. It is up to 15 years. So, the loan repayment period then becomes very aggressive and very short.”

As Bhutan aims to position itself as a leader in sustainable energy, addressing these financing challenges will be crucial to unlocking the potential of its abundant renewable resources. 

Samten Dolkar 

Edited by Sherub Dorji 

Previous Post

Electric taxi drivers in Samtse struggle as DC charger remains down for months

Next Post

Rising toll fees on Indian Highways challenge Bhutanese drivers

Next Post
Rising toll fees on Indian Highways challenge Bhutanese drivers

Rising toll fees on Indian Highways challenge Bhutanese drivers

Government targets Nu 100bn in FDI by end of 13th Five-Year Plan

Government targets Nu 100bn in FDI by end of 13th Five-Year Plan

Orong Gewog residents frustrated by delayed bypass road

Orong Gewog residents frustrated by delayed bypass road

RECOMMENDED NEWS

Model bus stop inaugurated

Model bus stop inaugurated

9 years ago
2

RCSC’s yearlong Nurturing Leadership Programme ends

3 years ago
9
India-Bhutan e-Library portal formally handed over to MoE today

India-Bhutan e-Library portal formally handed over to MoE today

5 years ago
10
Closing ceremony for second phase of million fruit tree plantation project held in Sarpang

Closing ceremony for second phase of million fruit tree plantation project held in Sarpang

2 years ago
3

BROWSE BY CATEGORIES

  • Accidents (14)
  • Agriculture (426)
  • Announcement (174)
  • Audience Survey Report (1)
  • Business (744)
  • Crime/Legal (367)
  • Culture (47)
  • Development (51)
  • Disaster (57)
  • Economy (277)
  • Education (412)
  • Entertainment (13)
  • Environment (60)
  • Feature (65)
  • Featured (6)
  • Festival (78)
  • GMC (14)
  • Headlines (6)
  • Health (622)
  • Legal (52)
  • Literature (9)
  • Livestock (75)
  • Media (25)
  • Other Stories (5,574)
  • Politics (419)
  • RCSC (1)
  • Recent stories (5)
  • Religion (45)
  • Sci/Tech (709)
  • Social (515)
  • Sports (449)
  • Technology (190)
  • Tourism (19)
  • Uncategorized (13,866)
  • Video (136)
  • Video Story (249)
  • Wildlife (42)

BROWSE BY TOPICS

Tender Announcement Vacancy Announcement

POPULAR NEWS

  • BPC’s investigation rules out transformer short circuit as Damchhu forest fire cause

    Viral video of Bhutanese man assaulted by locals and police in Jaigaon sparks safety concerns

    0 shares
    Share 0 Tweet 0
  • Gelephu Mindfulness City opens recruitment drive for Bhutanese professionals

    0 shares
    Share 0 Tweet 0
  • Newspaper accuses DPT candidate of political ploy

    0 shares
    Share 0 Tweet 0
  • A centenarian’s recipe to longevity

    0 shares
    Share 0 Tweet 0
  • Post-mortem confirms foul play: Progress in investigation of 24-year-old woman’s death

    0 shares
    Share 0 Tweet 0
BBSCL

Bhutan Broadcasting Service (BBS) is Bhutan’s primary national broadcaster, delivering diverse news and entertainment in multiple languages, fostering cultural understanding and public knowledge.

Follow us on social media:

Recent News

  • RMA to roll out seven new measures for loan repayment support
  • National Housing Strategy to be ready by September
  • Bhutan begins NFT sales, to preserve heritage
  • City bus viability raised in parliament, MoIT minister cites past privatisation failures
  • Paro MP questions airport expansion impact on affected landowners

News Category

  • Accidents
  • Agriculture
  • Announcement
  • Audience Survey Report
  • Business
  • Crime/Legal
  • Culture
  • Development
  • Disaster
  • Economy
  • Education
  • Entertainment
  • Environment
  • Feature
  • Featured
  • Festival
  • GMC
  • Headlines
  • Health
  • Legal
  • Literature
  • Livestock
  • Media
  • Other Stories
  • Politics
  • RCSC
  • Recent stories
  • Religion
  • Sci/Tech
  • Social
  • Sports
  • Technology
  • Tourism
  • Uncategorized
  • Video
  • Video Story
  • Wildlife
  • Contact Us
  • About BBS
  • Privacy & Policy

© 2024 BBSCL. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • Business
  • Politics
  • Sports
  • Education
  • More
    • Announcement
    • Audience Survey Report
    • Programme
    • Radio Dzo-Channel Schedule
    • Radio Mix-Channel Schedule

© 2024 BBSCL. All rights reserved.