REC, PFC sign MoU for financing 600 MW hydro project in Bhutan

REC Limited along with Power Finance Corporation Limited (PFC) has signed memorandum of understanding (MoU) with Kholongchhu Hydro Energy Limited (KHEL) for financing of the 600 MW hydro electric project at TrashiYangtse, Bhutan.

The project is proposed to be funded in a debt-equity ratio of 70:30 and as per the MoU, REC would extend rupee term loan of Rs 20.29 billion. The balance debt shall be extended by PFC (Rs 20.29 billion), NPPF, Bhutan (Rs 2 billion) and Bank of Bhutan (Rs 2 billion). KHEL is a 50:50 joint venture between SJVN India and Druk Green Power Corporation (Bhutan) set up for developing the 600-MW Kholongchhu hydroelectric project in the eastern Bhutan.

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