Date:19/09/2008 URL: http://www.thehindu.com/2008/09/19/stories/2008091957301800.htm

Business

NHPC to build two projects in Myanmar

Special Correspondent

To form a joint venture with DHPI

Centre extends $60 m for the Thahtay Chaung project
Power Grid to execute three major transmission lines

NEW DELHI: In what is being termed as a “major strategic victory” for India, the Myanmar Government has signed a memorandum of understanding (MoU) with the Indian Government for taking up detailed project reports (DPRs) and execution of two major hydro power projects on its soil on Chindwin River. The projects would be executed by NHPC.

Breakthrough

The breakthrough has come after a series of meetings between the representatives of the two countries followed by the visit of the Minister of State for Power and Commerce, Jairam Ramesh, to Myanmar on June 23 where he firmed up investment plans after his meeting with Lt. Gen Thiha Thura Tin Aung Myint Oo, Secretary, State Peace and Development Council, Myanmar.

Under the agreement, the Department of Hydropower Implementation (DHPI) with the help of NHPC, will develop the 1,200 MW Tamathi hydro power project and the 600 MW Shwzaye hydro power project.

“This is a major strategic victory for us. The Chindwin River holds huge hydro power potential and we intend to further strengthen this relationship by going in for other such projects in Myanmar,” Mr. Jairam Ramesh said.

Mr. Jairam Ramesh said both the parties would form a joint venture company to execute the projects. The Union Government had already extended a line of credit for $60 million for the 111 MW Thahtay Chaung power project to be executed by BHEL.

Similarly, credit line agreement between Exim Bank of India and Myanmar Foreign Trade Bank for $64 million has been agreed for financing three major transmission lines to be executed by Power Grid Corporation.