The Bhutanese Leading the way.
With Reliance (Anil Ambani) increasingly looking unlikely to take part in the 770 MW Chamkharchhu I Hydropower Project the government has to have a plan ‘B.’
That Plan ‘B’ is the Druk Green Power Corporation (DGPC) taking over the project in 2026 and then looking for other partners to replace Reliance.
A source said that if Reliance is unable to fulfill its commitment, then there are other Indian partners like Tata, Adani, GMR etc who could be interested.
This issue has come up as the Minister of Energy and Natural Resources, Lyonpo Gem Tshering, responded to a question from Nubi Tangsibji MP Phuntsho Dendup regarding the implementation status of the Chamkharchhu Hydropower Project.
Lyonpo said that although it has been almost a year since the Memorandum of Understanding between Reliance and Druk Green Power Corporation (DGPC) was signed, the 770 MW Chamkharchhu Hydropower Project I has not started because Reliance has been facing certain issues.
He stated that even if Reliance is unable to begin the project, DGPC would start it by 2026. He added that the government is still in talks with Reliance and that they have to adhere to international legal processes, which they are continuing to work on.
On the status of the Chamkharchhu Hydropower Project II, the minister explained that it had been signed with GMR for the construction of the 590 MW project.
Regarding the Chamkharchhu Hydropower Project III, he explained that the project has been facing difficulties because it falls within the Thrumshingla National Park. He said that no solution has been found for this issue, which led to the project being taken out.
For Chamkharchhu Hydropower Project IV at 450 MW, Lyonpo Gem Tshering stated that an agreement has been signed with TATA and that the Detailed Project Report (DPR) has already begun.
During the session, Bji-Katsho MP Lhendup Wangdi asked whether it was time for Bhutan to change its partners. Lamgong Wangcha MP Sonam Tashi also asked if there might be ways to address the issues based on the Standard Operating Procedure (SOP) since an agreement had already been signed, and whether the ministry had explored alternative solutions.
In response, Lyonpo Gem Tshering said that Reliance is a well-known company and that this was the reason the government signed the agreement and the MoU. He stated that had they known issues would arise on Reliance’s side, they would not have signed, but they were not aware of what would happen in the future with both Reliance and the Government of India.
He explained that the SOP includes measures for situations where the partner cannot meet its obligations on time, but because this is an international matter, the government must follow international legal procedures.
He said they are reviewing the matter carefully because mishandling it could affect the longstanding friendship with India. He added that the government is aware that people will be disappointed since the project has been ongoing for a long time. For this reason, he stated that DGPC would take on the 770 MW Chamkarchu project if the issues cannot be resolved by 2026.
