Bhutan-based Kholongchhu Hydro Power Ltd has signed a term loan agreement worth Rs 4,829 crore with state-owned Power Finance Corporation (PFC).

Khorlochhu Hydro Power Ltd (KHPL), a strategic partnership with 60% shareholding by Druk Green Power Corporation Ltd (DGPC) and 40% by Tata Power Company Ltd, is developing the 600 megawatt (MW) Khorlochhu Hydropower Project in Bhutan. The project, with an estimated cost of approximately Rs 6,900 crore, including financing charges, is expected to be commissioned in 2029-2030.

According to DGPC, KHPL signed the Rs 4,829 crore loan agreement with India’s NBFC Power Finance Corporation Ltd (PFC) on Sunday. The agreement also provides for a further standby credit facility of Rs 950 crore.

This landmark transaction marks PFC’s first cross-border financing in Bhutan and highlights the growing clean energy cooperation between India and Bhutan.

Under the agreement, PFC will be the sole lender to the project.