Tata Power and Druk Green Power Partner for 1,125 MW Hydropower Project in Bhutan
Tata Power has inked commercial agreements with Bhutan’s Druk Green Power Corporation to jointly develop the 1,125 MW Dorjilung hydropower project. Tata Power will hold 40 percent stake in the SPV and will infuse INR 1,572 crore, in tranches. The project, built at an estimated cost of INR 13,100 crore is expected to be commissioned by September 2031.
November 24, 2025. By Mrinmoy Dey
The Project will be implemented through a Special Purpose Vehicle (SPV), with DGPC and Tata Power holding equity shares of 60 percent and 40 percent, respectively, the company said in a statement.
The run-of-the-river project, comprising six units of 187.5 MW each, is being developed on the Kurichhu River in Mongar, Bhutan. Designed with a six-hour pondage for peaking, Dorjilung represents a major step forward in expanding clean, reliable hydropower in the region. Tata Power has committed an equity investment of approximately INR 1,572 crore to be infused in tranches as per the agreed structure.
At a total project cost of INR 13,100 crore, Dorjilung will be Bhutan's second-largest hydropower project, and the largest Public-Private Partnership (PPP) hydro project ever undertaken in the country. On completion, the SPV will become an associate company of Tata Power, strengthening its strategic presence in the Himalayan renewable energy corridor.
The project is slated for commissioning in September 2031, and 80 percent of its generation will be supplied to India, providing a significant boost to regional energy security and clean power availability. The project is supported by the World Bank.
The concession agreement was signed in Thimphu, Bhutan, by Dr. Praveer Sinha, CEO and Managing Director, Tata Power; Dasho Chhewang Rinzin, Managing Director, Druk Green Power Corporation (DGPC) and Karma P. Dorji, Director General, Ministry of Energy and Natural Resources (MOENR), Government of Bhutan.
The signing was done in the presence of Prime Minister of Bhutan Lyonchhen Tshering Tobgay and Dasho Karma Tshering, Secretary, MoENR; Dasho Karma Y Raydi, Chairman, Druk Holding Investments; Anjali Pandey, President, Generation Business, Tata Power and senior officials of the Indian Embassy in Bhutan and the World Bank.
The partnership between Tata Power and DGPC builds on decades of energy cooperation that have shaped South Asia's clean energy landscape. Dorjilung marks the next chapter after the Dagachhu Hydro Power Project, where Tata Power holds a 26 percent stake, and the under-implementation 600 MW Khorlochhu Hydropower Project, where Tata Power also holds a 40 percent stake. Together, these projects advance the broader commitment of Tata Power and DGPC to jointly develop 5,000 MW of clean energy capacity in Bhutan, which is aligned with Bhutan's national priorities and India's net-zero ambitions.
Dr Praveer Sinha, CEO and Managing Director, Tata Power, 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.”
Dasho Chhewang Rinzin, Managing Director, Druk Green Power Corporation (DGPC), 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.”
Apart from the recent commissioning of the 1,020 MW Punatsangchhu II hydroelectric project and the expected completion of the 1,200 MW Punatsangchhu I hydroelectric project within the next four years, the Government of India's recent announcement of a concessional Line of Credit of INR 40 billion for Bhutan's energy projects further signals strong bilateral support for sustainable infrastructure and green growth.
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