Mumbai: The country’s largest private power utility Tata Power Company has begun construction of the 114- mw Dagachhu hydel power project in Bhutan and expects to commission the first unit in 2013.
Tata Power will build and operate the run-of-the-river project in partnership with the Bhutanese government. While Tata Power holds 26 per cent in the project, the remaining 74 per cent is with the Bhutanese government-owned agencies.
“There are two units of 57 mw each at the Dagachhu project. The first unit will be commissioned in 2013 and it will take about four years for the whole project to be completed,” Tata Power executive director for strategy and business development Banmali Agrawala, told PTI here.
The USD 201.5-million project has achieved financial closure through loans secured from Asian Development Bank, Austrian export credit agency OeKB, and Bhutan’s Druk Green Power Corp, the rest being equity participation.
A part of the capital has been used to award contracts for civil work and equipment among other things.
“Major clearances, including environmental approvals, are in place. Contracts for civil work and equipments are in place as well. The design of the entire plant and all the soft part is over and work on the ground will start now,” Mr. Agrawala said.