Tata Power Company has signed commercial agreements with Druk Green Power Corporation (DGPC) for the 1,13GW Dorjilung hydroelectric power project in Bhutan.
The project will be executed through a special purpose vehicle, with DGPC holding 60% equity and Tata Power 40%.
The run-of-the-river project will be located on the Kurichhu River in Mongar, Bhutan, and will include six units of 187.5MW each. It is designed with six-hour pondage for peaking. Tata Power will invest approximately Rs15.72bn ($175m) in equity, to be infused in tranches.
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At a total cost of around Rs131bn, Dorjilung will be Bhutan’s second-largest hydropower project and the largest public-private partnership (PPP) hydro project in the country. The project is scheduled for commissioning in September 2031. Once operational, 80% of the power generated will be supplied to India, while also contributing to Bhutan’s domestic energy needs. The World Bank is supporting the initiative.
The concession agreement was signed in Thimphu by Praveer Sinha, CEO and managing director, Tata Power; Dasho Chhewang Rinzin, managing director, DGPC; and Karma P. Dorji, Director General, Ministry of Energy and Natural Resources, Bhutan. The signing took place in the presence of Bhutan’s Prime Minister, Lyonchhen Tshering Tobgay, and other senior officials from Bhutan, the Indian Embassy and the World Bank.
Praveer Sinha said: “The Dorjilung project reinforces our commitment to accelerating clean energy development in the region. As Bhutan’s largest hydro project under the PPP model, it is designed to fully support Bhutan’s domestic energy aspirations while also enabling the export of surplus clean power to India, strengthening regional energy security.
“We thank the governments of Bhutan and India, the World Bank and DGPC for their support and trust. This partnership further strengthens our hydropower portfolio and positions the Indo-Bhutan energy corridor as a leading model for mutually beneficial, cross-border green energy cooperation.”
The agreement builds on previous collaborations between Tata Power and DGPC, including the Dagachhu hydropower project and the under-construction 600MW Khorlochhu hydropower project. Together, these projects support a joint goal of developing 5GW of clean energy capacity in Bhutan.
Dasho Chhewang Rinzin said: “We are extremely happy to be moving ahead with the implementation of the Dorjilung project so soon after the Khorlochhu project in partnership with Tata Power. Bhutan’s huge hydropower potential positions it at the heart of South Asia’s clean energy future. Our strategic partnership with Tata Power on the Dorjilung project reflects Bhutan’s commitment to collaborative partnerships for regional progress. By combining Bhutan’s hydropower capabilities with India’s technical expertise, we are creating a future of reliable, clean energy that benefits both nations and sets a global benchmark in green cooperation.
“We look forward to starting work on other projects, also with Tata Power and other partners.”
The project aligns with both Bhutan’s development goals and India’s clean energy targets, and further strengthens regional energy cooperation.
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