India and Bhutan took a major step forward for the construction of the 600 MW Kholongchhu project.

Try this question from CSP 2019:

What is common to the places known as Aliyar, Isapur and Kangsabati?

(a) Recently discovered uranium deposits

(b) Tropical rain forests

(c) Underground cave systems

(d) Water reservoirs

Kholongchhu Hydel Project

• The Kholongchhu project is regarded as a “milestone” in the India-Bhutan partnership, under which four hydropower projects have been built in the last 30 years totalling a capacity of 2,100 MW.
• It is one of four additional projects agreed to in 2008, as a part of India’s commitment to helping Bhutan create a total 10,000 MW of installed capacity by 2020.
• The project is located at the lower course of Kholongchhu just before its confluence with Drangmechu (Gongrichu) in Trashiyangtse District of Bhutan.
• The GoI will provide, as a grant, the equity share of the Bhutanese DGPC in the JV Company.
• Once the project is commissioned, the JV partners will run it for 30 years, called the concession period, after which the full ownership will transfer to the Bhutan government.

Whats’ so special with the project?

• It is the first hydropower joint venture project in Bhutan’s less developed eastern region of Trashiyangtse.
• It is the first time an India-Bhutan hydropower project will be constructed as a 50:50 joint venture and not as a government-to-government agreement.

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