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PFC, REC sign MoU with KHEL for funding its hydro project

By IndianMandarins- 13 Mar 2021

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New Delhi (13.03.21): Power Finance Corporation Ltd. (PFC) along with REC Ltd. has signed a Memorandum of Understanding (MoU) with Kholongchhu Hydro Energy Ltd (KHEL) for extending a Term Loan of ₹4,058 Crore for 600 MW Hydro Electric Project at Trashi Yangtse, Bhutan. The project is proposed to be funded in a debt-equity ratio of 70:30 and the Term loan of ₹4,058 Crore will be shared between PFC and REC in equal proportion.

Apart from PFC and REC, ₹ 400 crores are proposed to be arranged from the Bank of Bhutan and ₹200 crores from NPPF Bhutan

KHEL is a JV company of SJVN Ltd. and Druk Green Power Corporation Ltd (DGPC), a Royal Government of Bhutan undertaking. This is the first project being executed in the Joint Venture (JV) model in Bhutan. The project is expected to be commissioned in FY 2025-26 and will generate about 2,569 Million Units of energy which will meet the future power requirement of India and Bhutan.

The MoU was signed in the presence of PFC CMD RS Dhillon, REC CMD Sanjay Malhotra, SJVNL CMD NL Sharma, and KHEL Chairman Dasho Yeshi Wangdi

PFC officials PK Singh, Director (Commercial) & Addl. Charge Director (Projects), Ms. Parminder Chopra, Director (Finance), GS Patra, Executive Director, and other senior officers were also present at the MoU signing event through video conferencing (VC).