Hindustan Construction wins contracts for Bhutan and India hydropower projects

28 March 2016 (Last Updated March 28th, 2016 18:30)

Hindustan Construction Company (HCC) has secured two contracts totalling Rs6.23bn ($93.12m) for hydropower projects in Bhutan and India.

Hindustan Construction Company (HCC) has secured two contracts totalling Rs6.23bn ($93.12m) for hydropower projects in Bhutan and India.

HCC will build 118MW Nikachhu hydropower project in Trongsa district of Bhutan, under an engineering, procurement, construction (EPC) contract from Tangsibji Hydro Energy.

The Rs4.56bn ($68.16m) EPC contract from Tangsibji Hydro will require HCC to complete the project in four years.

It is the company's second hydroelectric power project on an EPC basis, and its fifth development in Bhutan.

"Having delivered four hydroelectric projects in Bhutan, HCC is committed toward the development of hydropower."

The Nikachhu run-of-the-river scheme project is being funded by Asian Development Bank at debt equity ratio of 65:35.

The company has recently completed 124MW Dagachhu hydroelectric power project on EPC basis in Dagana district of Bhutan.

Valued at around Rs1.67bn ($24.96m), the second order was awarded by Jammu and Kashmir State Power Development Corporation (JKSPDC) for design and construction of a 1,500m-long tunnel in the state.

Expected to be complete in 30 months, the proposed double lane tunnel will serve as the access road to 1,856MW Sawalkote hydroelectric power project.

HCC engineering and construction president and CEO Arun Karambelkar said: "These two order wins reflect the growing confidence in HCC's capability to execute key projects in the challenging terrain of the Himalayan ranges.

"HCC, having delivered four hydroelectric projects in Bhutan, is committed toward the development of hydropower of Bhutan."

HCC has received orders worth Rs57.78bn ($863.7m) in FY 2015-16 alone.