The cost of 1200 MW Punatsangchhu-I hydro electric power project may escalate to Rs. 5,280.35 crore. Earlier, the Ministry of Power had forwarded the cost escalation proposal submitted by Punatsangchhu-I Hydroelectric Project Authority to Central Electricity Authority. In fact, PHPA-I had submitted the revised Cost-to-Completion Estimates of Rs. 9,050 crore. On the other hand, CEA has estimated escalated cost of civil works at Rs. 3,231.63 crore at December 2012 price level. According to CEA estimation, revised cost for E&M works and transmission works has been fixed at Rs. 1,434.91 crore and Rs. 613.8 crore, respectively. It may be recalled here that in 2007, CEA had estimated the total cost of the project at Rs. 3,514.81 crore. CEA’s revised estimation does not include components like variation due to change in scope, inadequate provision, change in design, additional requirements and other causes, meaning that there is scope for the cost to go up further.
The Punatsangchhu-I Hydroelectric Power project is located in the Southern Himalayas, about 80 km east of Bhutan’s capital Thimphu. Larsen & Toubro had bagged the contract for the construction of the Dam Package for Rs.1245 crores. WAPCOS Limited is the engineering and design consultant of the Project.