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The second phase of the 1,020-megawatt Puna Zangchu Hydropower Station has been completed by 10%, with the first phase already completed and expected to start generating electricity in August this year.
According to the Ministry of Energy and Natural Resources, if all goes according to plan, four units are expected to start generating electricity in August.
The total capacity of the second phase of the Puna Zangqu Hydropower Station is 170 units. Two units will be put into operation in August, totaling 340 units.
If all six units are put into operation, they will generate 4.357 billion kilowatt-hours of electricity per year.
An official from the ministry said the only reason the project faced construction challenges was due to the outbreak of the novel coronavirus (COVID-1), “which has been going on for two years,” he said.
The official said the project was implemented after the country lifted the curfew and 97 percent of the work required for reinforcement has been completed.
The project was originally scheduled to start in 2020 and be completed in 2016, but the construction of the power plant was affected by severe floods.
On revenue generation, the official said discussions are ongoing with the Indian government regarding tariffs.
The project is expected to cost Rs 94.46 billion when completed and has achieved 90% of its financial results.
The Puna Gtsangchu Hydropower Project 2 will be financed 30% and 70% by the Government of India.
As of March this year, power-related loans stood at 16.75 trillion rupees ($261.12 billion), accounting for 64.1% of the total.
According to the Ministry of Finance, the electricity debt can be repaid with electricity, and they admit that they don’t have much mouth to feed.
The electricity export tax is calculated based on the estimated total cost of the project, which they are building, and selling enough electricity to ensure the loan is paid off.
All hydropower projects are insured and reinsured against natural hazards, the only uninsured human liabilities are water-related risks.
According to the Ministry of Finance, there is huge potential for commercialization and export of hydropower projects. India also has an electricity market and 91.1% of the electricity debt is in rupees, so there will be no currency conversion problems.
Ugyen Dorje
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