Recently a concession agreement for the 600 MW Kholongchhu Indo-Bhutan joint venture hydroelectric project was signed. The agreement for the project was inked between the Bhutanese government and the Kholongchhu Hydro Energy. The signing will lead to commencement of construction and other works of this first JV hydroelectric project between India and Bhutan. The project is expected to be completed in the H2/2025. The 600 MW run-of-the-river project is located on the lower course of the Kholongchhu river in Trashiyangtse district in eastern Bhutan.
The project envisages an underground powerhouse of four 150 MW turbines with water impounded by a concrete gravity dam of 95 mtr height. It will be implemented by Kholongchhu Hydro Energy, a joint venture company formed between Druk Green Power Corporation (DGPC) of Bhutan and Satluj Jal Vidyut Nigam (SJVNL) of India. The 720 MW Mangdechhu hydroelectric project was jointly inaugurated earlier in August 2019 by the Prime Ministers of India and Bhutan. With this, four hydroelectric projects of bilateral cooperation, 336 MW Chukha HEP, 60 MW Kurichhu HEP, 1,020 MW Tala HEP and 720 MW Mangdechhu HEP), totalling over 2,100 MW, are already operational in Bhutan.