India has signed umbrella agreement with Bhutan under which India provides Project investigation, design and engineering services, constructional supervision and highly concessional finance for the upcoming hydro projects. In return, India is entitled & is committed to purchase all the surplus power, after meeting the needs of Bhutan.
Presently, Bhutan is supplying 1400 MW of Hydro Power to India from Chhukha (336 MW) since October, 2002, Tala (1020 MW) since August, 2006 and Kurichhu (60 MW) since October, 2002. The power from these projects is being supplied to Eastern & Northern Indian states as per the allocation determined by Govt. of India through PTC India Limited.
Further, Ten projects have been selected by Government of India and Royal Government of Bhutan for the development of 10,000 MW by 2020 under the Framework Agreement signed between the 2 Countries. Energy available for Sale in India would be around 2200 MU by 2020 and 8000 MU by 2026 with completion of 10,000 MW projects, excluding the PPP/ IPP projects.
PTC India Limited, recently signed a Power Purchase Agreement (PPA) with Tangsibji Hydro Energy Limited (THyE), wholly owned by the Royal Government of Bhutan through the Druk Green Power Corporation Limited (DGPC), for purchase of power from 118 MW Nikachhu Hydropower Project located on Nikachhu river in Trongsa Dzongkhag District of Bhutan. PPA is part of the PTC’s commitment for its strong presence in Bhutan.
Power from Nikachhu Hydropower Project shall be supplied to Assam Power Distribution Company Limited (APDCL) to meet its power demand in the state on long term basis.