PFC Signs ₹57.8 Billion Deal for 600MW Khorlochhu Hydropower in Bhutan

Power Finance Corp. Ltd. on Sunday signed a term loan agreement of ₹48.29 billion and a standby credit facility of ₹9.50 billion with Khorlochhu Hydro Power Ltd. to develop the 600-megawatt Khorlochhu Hydropower Project in Bhutan. The project is expected to be commissioned in 2029 or 2030.

Khorlochhu Hydro Power is a joint venture with Druk Green Power Corp. Ltd. holding a 60% stake and Tata Power Co. Ltd. holding 40%. The project, estimated to cost ₹69.00 billion, is expected to generate 2,524 million units annually. The partners are also planning over 4,500 MW of hydropower and 500 MW of solar capacity in Bhutan.

This marks PFC’s first cross-border financing in Bhutan, where it will act as the sole lender. The project will strengthen regional energy security, supplying clean energy to Bhutan in winter, with surplus power exported to India during summer shortages.