Cabinet approves dam relocation proposal (Economy)

Thimphu, June 25: The cabinet approved the proposal for relocation of the 1095 MW Punatsangchu dam. As per the decision, the dam will be moved by 1.4 km upward from the current location .

The proposal from the Punatsangchu Hydroelectric Project Authority (PHPA) was presented before the cabinet for approval knowing that new local could help produce more power than planned as the length of tunnel increases.

It is expected that the production would go up by some 200 MW with the relocation of the dam, which will submerge around 70 acres of paddy cropland, along with some houses instead of 20 acres in older location.

Under the new plan, the plant will be costlier by Nu 1.2 billion in addition to Nu 35.14 billion initial projection.

A total of Nu 100 million budget has been allocated for compensation to nearby residents whose land could be submerged in to the dam area. Bhutan News Service