Tata Power Invests in Bhutan Hydro Project

New Delhi, Nov 21 (PTI) Tata Power on Friday said it has signed commercial agreements with Druk Green Power Corporation to acquire a 40 per cent stake in a special purpose vehicle for Rs 1,572 crore to set up the 1,125 MW Dorjilung hydro power project in Bhutan.

At a total project cost of Rs 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.

As part of the agreement, Tata Power has committed an equity investment of approximately Rs 1,572 crore to be infused in tranches as per the agreed structure.

Tata Power and Druk Green Power Corporation Limited (DGPC) signed commercial agreements for the implementation of the 1,125 MW Dorjilung Hydroelectric Power Project in Bhutan.


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.

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 per cent 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, marking a milestone in cross-border clean energy financing.

The concession agreement was signed in Thimphu by Tata Power CEO and MD Praveer Sinha and Dasho Chhewang Rinzin, Managing Director, Druk Green Power Corporation Limited (DGPC), in the presence of Bhutan Prime Minister Lyonchhen Tshering Tobgay.

Sinha said: "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. 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".