Bhutan’s Kholongchhu Hydro signs Rs 4,829 crore loan deal with PFC
Author: PPD Team Date: September 30, 2025
Kholongchhu Hydro Power Ltd (KHPL) has signed a Rs 4,829 crore term loan agreement with Power Finance Corporation (PFC) to fund the 600-megawatt Khorlochhu Hydropower Project in Bhutan.
KHPL is a joint venture with Druk Green Power Corporation Ltd (DGPC) holding 60 per cent and Tata Power Company Ltd holding 40 per cent. Located in the Trashiyangtse Dzongkhag region, the project has an estimated cost of about Rs 6,900 crore, including financing charges. Commissioning is targeted between 2029 and 2030.
The project is expected to generate 2,524 million units of electricity annually. While meeting Bhutan’s domestic demand, it will also supply surplus power to India, particularly during the summer months. A 145-km, 400 kV double-circuit transmission line, to be developed by Bhutan Power Corporation Ltd, will connect the project to the Goling pooling station.
The financing marks PFC’s first cross-border lending transaction in Bhutan. In addition to the main loan, PFC will provide a standby credit facility of Rs 950 crore.
