KHPL Secures INR 4,829 Crore PFC Loan for 600 MW Khorlochhu Hydropower Project in Bhutan
Khorlochhu Hydro Power has signed a term loan agreement worth INR 4,829 crore with PFC.
October 01, 2025. By Abha Rustagi
KHPL has signed a term loan agreement worth INR 4,829 crore with state-owned Power Finance Corporation (PFC). The project, with an estimated cost of approximately INR 6,900 crore, including financing charges, is expected to be commissioned in 2029-2030.
According to DGPC, KHPL signed the INR 4,829 crore loan agreement with PFC. The agreement also provides for a further standby credit facility of INR 950 crore.
This transaction marks PFC's first cross-border financing in Bhutan and highlights the growing clean energy cooperation between India and Bhutan. Under the agreement, PFC will be the sole lender to the project.
The Khorlochhu Hydropower Project in Trashiyangtse Dzongkhag is expected to generate 2,524 million units of electricity annually. The project will help meet Bhutan's winter demand and enable the export of surplus power to India during the summer months.
Construction has already commenced, with civil contracts awarded and works underway since January 1, 2025. Power evacuation will involve a 145 km, 400 kV double-circuit transmission line from the project to the Goling pooling station, which will be constructed by Bhutan Power Corporation.
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