Economic Times
PTI
July 21, 2015
NEW DELHI: The Union Cabinet today approved revised cost of 1,200 MW Punatsangchu-I hydro power project in Bhutan to Rs 9,375.58 crore.
The Cabinet, chaired by Prime Minister Narendra Modi, has given its approval to the revised cost estimates of Rs 9,375.58 crore for the 1,200 MW Punatsangchu hydroelectric projects in Bhutan.
Factors behind upward revision of the project cost include price escalation of generation work (29.7 per cent), change in scope/design (9.82 per cent), ..
sources said.
The other factors for increasing the project cost include stabilisation measure for the right bank (6.32 per cent), increase in cost of transmission work (7.99 per cent) and other causes (17.12 per cent), they added.
The time over-run is about two and a half years. The reasons for time over-run include dam location getting shifted by 1.5 km to reduce excessive dam height, which also resulted in increase in the capacity of the project by 105 MW.
The other reasons for delay include unprecedented ‘Alia’ flood in 2009 and change in pooling station from Siliguri to Alipurduar to cope with the power evacuation from future hydro-electric projects in Bhutan.
The project witnessed geological surprise of the sliding of the right bank in 2013.
Some of the above mentioned factor necessitated design change in several key project features like the diversion tunnel, coffer dam, headrace tunnel, surge shaft, tail race tunnel, cable tunnel and addition of butterfly valves.
The project has been the key strategic platform on which India-Bhutan ties have been built over the decades, sources said, adding that these projects are example of win-win cooperation, providing a reliable source of inexpensive and clean electricity to India, generating export revenue for a rupee-deficient Bhutan and cementing economic integration and strategic partnership
