India’s indecision keeps Bhutan’s 540 MW Amochu project under uncertainty

SILIGURI: Bhutan’s 540 MW Amochu Hydroelectricity project, an important one in Indo-Bhutan power planning, is under deep uncertainty over security as well as environmental issues.
Despite being one of the most financially viable and technically feasible one, the project’s upcoming is under uncertainty. Though it was supposed to enter into construction phase in 2013, it is, in actual, still at planning stage now.

According to the office of Bhutan Prime Minister Mr. T. Tobgey, India had not decided on the financing of Amochu. But the project was included in the 10,000MW power augmentation target of Bhutan to take place by 2020.

As learnt, government of India is concern on the exact location of Amochu project that falls at India’s tri-junction, the point where boundaries of three nations meet. And it posed security issues.

In addition to this, as per the preliminary project report, it is likely to affect huge number of households initiating risks of land related legal as well as social problems. Moreover, environmental issues, as usual for almost all major hydroprojects, are also there.

But, “We do not think India will scrap up the project as its planning is almost over and it is already within the 10,000 MW planning. But, delay in finalizing the project will significantly escalate the cost and increase time overrun,” said a senior official from Drunk Green Power Corporation (DGPC), the highest Hydropower authority of Bhutan.

India is providing financial support to Bhutan for the development of these new projects against Bhutan’s commitment to give this entire amount of output to India. “Hydropower rich Bhutan may open up its green power field for countries other than India too. But only after we address our first priority, that is to fulfill our commitment to India by establishing the planned projects” Dasho Steering Wangda, Consul General of Bhutan in India, said earlier.

Development of these projects at an expenditure of around Rs 80,000 crore is to remain mainly under the monitoring of DGPC.

As learnt, for the Inter Governmental financial model for the projects, a new body, powered by Indian finance, will shoulder the responsibility of installing capacity of 7,000 to 8,000MW.

For the rest 2000 to 3000 MW capacity, Indian public sectors, with DGPC as partners, are undertaking the projects under JV model. Indian partners will organize loans to suffice 70% of the need. They, along with DGPC will put in their own equity as the rest 30%. Here, DGPC’s share of equity also will be provided by India as Grant.