CHUKHA HYDRO POWER CORPORATION (CHPC)

 

Updated on April 06,  2005

 

 

Hydro electricity Page : Basochhu Project :Punatsangchhu Project  :Tala  Project : Kurichhu Project

 

 

CONTENTS

  1. Chukha Hydro Power Corporation (CHPC)

  2. Project Details

  3. News Articles on CHPC

  4. Chukha Agreement with the Government of India

  5. Photographs: Dam and Turbine  photos

 

 

1. Chukha Hydro Power Corporation (CHPC)

 

 

The current operational - Chukha Hydropower Corporation (CHPC) was entirely funded by the Government of India. The construction of the Chukha Hydroelectric plant was started in 1978. It was successfully  commissioned in 1988. India constructed  the 336 mega watt CHPC- Bhutan’s first mega power project on a turnkey basis.  On completion, the project cost  was estimated at   NU/IRS 2,460 million (  then approximately US $ 200 million).  India provided a 60 percent grants and 40 percent loan at 5 percent per annum repayable in 15 years in equated annual instalments, the first repayment commencing 3 years after each withdrawal of the loan. (Nu is short form of Bhutanese currency Ngultrum. IRS is short from for Indian Rupees. The value of NU is at par with IRS)

 

The CHPC has a 40 metre (130 ft.) high diversion dam, located about 1.60 km upstream of the point of confluence of Ti-Chu  ( river) with Wong Chu (river) where the river bed lies at + 1689 metre  having maximum pond level of + 1716.20 metre. It has 6560 metre (21517 ft.) long head race tunnel, 71.5 cumecs (250 cusecs) capacity, taking off on the left bank and conveying the waters to an underground power house,

 

The project was handed over to Bhutanese management  in June 1991. 70% of power  generated  by this project  is exported  to India. It has an installed capacity of 336 MW. In 1998, electricity valued at Rs1338.8 million was exported  to India. In 2000, It exported electricity worth Rs 1650 million to India.   In 2000, according to the government newspaper Kuensel, the Chukha Hydro Power Corporation alone contributed Nu. 2007.3 million ( US $ 40.75 million –Eds) to the national exchequer. Today, the power sector contributes about 45 percent to the gross revenue generation in the country and accounts for about 11 percent of the GDP.”  The Chukha Hydro Power Corporation (CHPC) manages the project.

 

During the period between April 2003 to March 2004,  a total of 1494.75 MUs of power was exported to India

 

2. Project details

 

Total Energy Output: 1320 MUs on the basis of average flow.

Cost on completion : Nu. 2460 Million

Generation Tariff : Nu. 1.50 per unit to be raised to  Nu. 2.00 from January 1, 2005

Source: Wangchu River

Net Head: 435 m

Capacity : 4 x 84 MW

Date of Commissioning : 1988

Beneficiaries:  India’s Eastern Region Constituents comprising of:  West Bengal, Bihar , Jharkhand,  Orissa,  Sikkim and Damodar Valley Corporation (DVC)

 

 

3. NEWS ARTICLES

 

Chukha Power Tariff raised

 

December 04, 2004: India has agreed to raise the tariff for the sale of power from the Chukha Hydropower Project from January 01, 2005. The CHP is now selling power to India at Nu. 1.50 per unit. This will be raised to Nu. 2.50 per unit from January 01, 2005. The increased tariff will provide an additional earning of Nu. 750 million for the project and, after expenses, an additional revenue of Nu. 734 million for the government.  The new rate was approved by the government of India on the request of His Majesty the King during the royal visit to New Delhi from November 24 to 29, 2004. The CHPC will contribute Nu. 2,460 million to the government in dividends and corporate tax in the next fiscal year, nearly 40 percent of the government’s budget. The CHPC was the single largest source of revenue for the government, accounting for 37 percent of the total revenue in the last fiscal year.

 

The Chukha power tariff was last revised on July 1, 1999, from Nu. 1.00 to Nu. 1.50, after the increase was agreed during His Majesty’s visit to India from October 5 to 8, 1998.  The enhanced revenue would be able to meet the escalating cost of operation and maintenance of CHPC which had gone up by more than 12 percent a year over the past four years.  Source: Kuensel

 

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Chukhha hydro power corporation limited (CHPCL) sets record but expenditure rises

Kuensel June 17, 2004

The Chukhha hydro power corporation limited (CHPCL), Bhutan’s highest revenue earner, achieved a record generation of power in 2003 and set other records but its expenditure also increased. The corporation generated 1,956.74 million units of electricity, surpassing all previous records in its 17 years of existence. In 1999, the corporation had generated 1,943.74 million units of electricity.  According to CHPCL’s annual report 2003, the good water inflow from the Wangchhu river even in the dry seasons of October to December contributed to the increased generation. The corporation also brought down losses the report said.  The corporation made use of the available water to a maximum of 101.7 percent, the highest so far, through “efficient running of the machines” and maintaining the water in the dam at its highest “optimum” level. Less breakdown of plant equipment and increased coordination between the CHPCL and the eastern regional load dispatch centre in Kolkota, through which CHPCL supplied power to India, also helped. Generation losses from “outages” (breakdown of machines) and system disturbances in the eastern grid was also brought down to a record minimum of four million units of electricity, down from 15 to 20 million units of electricity in the past.

The revenue earned through sale of electricity to India and within the country also climbed up the highest with Nu 2,368.12 million from Nu 2,152.65 million in 2002.

“The performance of the corporation has been outstanding,” said the managing director of CHPCL, Yeshi Wangdi.

However, the corporation’s expenses rose reducing its profit. In 2003 the total expense was Nu 537.1 million up from Nu 509.35 million in 2002. The increased expenditure, according to the report, arose chiefly because the corporation had to pay about Nu 176 million to the Bhutan power corporation as “wheeling charge” for use of the transmission lines for exporting power to India. The corporation also bought more power from the Basochhu hydro power corporation.

The net profit was also affected by the decrease in interest earnings from the corporation’s deposits of about Nu 1,551 million in the Bhutanese banks which recently reduced its interest rates on deposits to about three percent. CHPCL’s net profit totalled Nu 1,322.28 million, up by 10 percent from the previous year.

Despite the setbacks CHPCL contributed Nu 1,871.47 million, as dividends and taxes, to the government exchequer, Nu 248 million more than the previous year. Its financial health also improved from 2002 with its debt equity ration at 0.16.

Meanwhile CHPCL’s outstanding loan to the government of India stood at Nu 350.2 million. As of December 31, 2003, a total of Nu 1,424.25 million had been paid.

Chukha’s priority : The Chukha hydro power corporation limited will start replacing its aging machines and equipment with modern ones to speed up efficiency and reduce maintenance expenses, according to its managing director, Yeshi Wangdi.

Since the power plant’s commissioning in 1986, there was no major replacements and some of the equipment and structures had become obsolete, said Yeshi Wangdi.

The replacement will start end of December and will be implemented in a “phased manner” by the Bharat heavy electrical limited of India

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Chukha revenue down : After three consecutive years of record generation, the Chukha Hydro Power corporation (CHPC) witnessed a fall in power generation worth Nu 130.5 million in 2002.  A low river in-flow in the dry months and mechanical failures resulted in a drop of 87 million units compared to the generation in 2001.  In 2002, the country’s highest revenue earner generated about 1,802 million units of power, down from 1,889 million units in 2001. The river in-flow in the lean months, from April to June and October to December, was much lower in 2002 than in the same months in 2001. From April to June the average generation was less by 28 million units and between October and December 2002 generation fell by about 52.62 million units . The gross revenue earned from sale of electricity within Bhutan and India was Nu 2,152 million in 2002, down from Nu 2,231 million in the previous year.   Revenue from sale of power to India accounted for about Nu 2,007 million while the rest came from sales to the department of power, Bhutan power corporation (BPC), and to local consumers in the CHPC colony. The increased domestic consumption, by about 5 million units in 2002, also contributed to the low revenue. The export tariff is five times higher than the domestic rate. The 336 MW Chukha power plant supplies power to seven western and southwestern districts  with 75 percent of its domestic consumption being in Chukha district alone.  Source: Kuensel March 29, 2003.

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Chukha hydropower corporation generates 1,957 million units of electricity

 in 2003,  the highest annual output since its commissioning in 1986.
January 08, 2004:

 

With a minimum loss of power generation and good water inflow from the Wangchu river, the Chukha hydropower corporation (CHPC), generated about 1,957 million units of electricity in 2003, the highest annual output since its commissioning in 1986, reports kuenselonline.com. It further said that country's record generation by Chukha hydropower corporation in 2003 highest revenue earner generated a gross revenue of about Nu 2,367 million through the export and domestic sale of electricity, the highest annual revenue earned so far. In 2003, the corporation lost about four million units of electricity (worth about Nu 16 million) down from 15 to 20 million units in the previous years. These losses are classified as ‘unavoidable’ and occur when machines are shut down for maintenance. The CHPC managing director explained that in the previous years losses were higher because of forced outages (unexpected breakdown of machines) and system disturbances in the eastern grid in India. The optimal usage of water, particularly during the lean or dry months was another reason for the increased generation, CHPC officials said. In the summer months the hydropower station runs to full capacity of 336 megawatts. From November to May when water inflow is minimal the generation slumps to as low as about 80 megawatts. A single turbine needs about 25 cubic meters of water to generate about 84 megawatts of power.

 

During summer we have more than 25 cubic meters of water and therefore we have to spill the excess water from the dam,” said the managing director of CHPC. During the winter season, water inflow drops to as low as 10 cubic meters enough to generate only about 40 megawatts. The low output of power during the lean season is however enough to meet the domestic power requirement, which is only about 75 megawatts.  Maintaining close interaction with the electricity constituents and load dispatch centers of the eastern grid in India also resulted in smooth evacuation of power in 2003. In 1999 the corporation generated 1943.740 million units followed by 1908.32 million units in 2000. In 2002, generation dipped because of poor water inflow and forced outages.

 

4.  Chukha Agreement with the Government of India

 

 

 

5. PHOTOGRAPHS

 

 

Chukha Hydel Dam/Reservoir

 

 

 

 Chukha Turbine