The cost of the transmission lines and Associated Transmission System (ATS) for the 720 MW Mangdechhu project in Bhutan has been brought down by 42%. According to CEA’s latest estimation, the cost of transmission system for the project will be Rs. 528.99 crore. This is much lower than the cost of Rs. 905 crore estimated during the revision of project cost undertaken last year. It may be remembered here that during the first revision of the project cost done in 2013, the cost of transmission system for the project increased by a whopping 200% from the original cost estimates at 2008 price level resulting in a big jump in overall project cost.

Mangdechhu Hydroelectric Project is one amongst the ten hydroelectric Projects planned under the 10,000MW hydropower development by the year 2020 programme of Royal Government of Bhutan supported by the Government of India. 4X180 MW Mangdechhu Hydroelectric Project, located on river Mangdechhu in Trongsa Dzongkhag in Central Bhutan, envisages construction of Concrete Gravity Dam, Diversion Tunnel, Spillway and Desilting Chamber among other works. The project is estimated to cost Rs.3,382 crore which will be funded by Indian government as 30% grant and 70% loan. Construction of dam and other associated works are done by Jaiprakash Associates while Gammon India is doing works relating to head race tunnel.

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