Private power producer Tata Power is eyeing more hydro-power projects in Bhutan.
Tata Power’s Managing Director Anil Sardana is expected to visit Bhutan this month where he would negotiate the finer print with the Bhutan Government, sources told Business Line .
Currently, Tata Power has a joint venture with Druk Power, an entity of the Royal Government of Bhutan, under which it is implementing a 126-MW from Dagachhu Hydro Project.
The project is at an advanced stage of implementation.
A Tata Power spokesperson confirmed the development. “The company is also looking at other opportunities to work in Bhutan and has always been keen due to good and healthy association with Bhutan Government. Tata Power is keen to explore all possibilities as may be forthcoming in Bhutan,” she said in response to queries from Business Line .
Earlier this year, the Rs 25,083-crore worth Tata Power sought Ministry of Power approval for setting up hydel projects in Bhutan.
However, Government has not responded to Tata Power’s proposal, the source said.
The private company had approached the Government because it was understood that no Indian company can ink deals with Bhutan without prior approval.
“But after reading the finer points, it came to light that the embargo is only for 12,906 MW that both the Governments are setting up based on bilateral agreements,” the source explained.
“Any Indian company is free to negotiate with Bhutan Government to set up a project outside the mentioned ones. The Bhutan Government is happy with Tata Power’s progress and they have initiated dialogues,” he explained.
Currently, in Bhutan 1,416 MW capacity is operational; 2,940 MW is under construction; detailed project report has been prepared for 6,750 MW and agreements have been signed for another 1,800 MW project.
All these projects are being set up under Indo-Bhutan Cooperation route.
For the Dagachhu Project, statutory clearances — land, water, and environment — have been received. The power purchase agreement for the entire quantum of power has been signed for the project. The first unit is targeted to be commissioned by 2013-14, according to information on Tata Power Web site.
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