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NEW DELHI, Aug. 31 (UPI) -- India signed an agreement with Bhutan to set up a 1,095 megawatt hydroelectric project in that country.
"An agreement has been signed between the government of India and Royal government of Bhutan on the implementation of Punatsangchhu-I hydroelectric project of 1,095 MW on Aug. 28, 2007," Indian Power Minister Sushil Kumar Shinde said.
Shinde said the estimated cost of the project was $500 million, excluding taxes and duties.
"The project is proposed to be funded by the government of India. The surplus power from the project will be exported to India thus augmenting power availability in the country," he said.
He said the project's installed capacity was expected to be 1,095 MW with six units of 182.5 MW each. Shinde said the project was likely to be commissioned in seven years from the date of commencement of construction.
India has been signing agreements with its neighbors, particularly Bhutan, Sri Lanka and Nepal, to set up power projects to meet its energy requirements.
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