Thimpu: India has approved Rs 1,765 crore as the interim cost escalation for Bhutan's Punatshangchu I hydropower project.
Prime Minister Manmohan Singh conveyed this to his Bhutanese counterpart Tshering Tobgay when they met yesterday on the sidelines of the 3rd BIMSTEC Summit in Nay Pyi Taw, Myanmar.
The approved amount of Rs 1,765 crore would be released in April after the completion of internal procedures within the Government of India, according to a press release from Bhutan's Ministry of Foreign Affairs.
Singh also conveyed Indian government's approval of the draft Intergovernmental Agreement between Bhutan and India concerning the development of Joint Venture Hydropower Projects.
Under the draft agreement - expected to be signed soon - four projects have been identified: the Kholongchhu project (600 MW), the Wangchhu (570 MW), the Chamkharchhu (770 MW) and Bunakha (180 MW).
Work on the Kholongchhu project can start as soon as the Intergovernmental Joint Venture is signed between the two countries, the release said.