Adani Power and Druk Green Power Corporation Ltd (DGPC) have signed a shareholders agreement to develop the 770 MW Chamkharchhu-I Hydropower Project in Thimpu, Bhutan. The deal, executed on October 5, 2026, establishes a joint venture with a 49:51 equity split between Adani Power and DGPC.

The agreement was disclosed under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The signing ceremony was attended by Bhutan’s Prime Minister Tshering Tobgay, along with key ministers and representatives from Druk Holding & Investments Limited. This project marks the second major hydropower collaboration between the two entities following the Wangchhu Hydroelectric Project agreement in September 2025.

Project structure and timeline

Adani Power and DGPC will jointly incorporate a public company in Bhutan to undertake the project. The partnership follows a Build, Own, Operate and Transfer model with a concession period of 30 years from commercial operation date. Construction is expected to begin in the first half of 2027, with commissioning targeted within six years of groundbreaking.

The project is part of a broader 5,000 MW hydropower development memorandum of understanding signed between the Adani Group and DGPC in May 2025. It aims to enhance Bhutan’s clean energy generation capacity while enabling the export of surplus green power to India during summer months.

Equity details and governance

The initial capital structure involves specific share issuance at a par value of BTN 100 per share. Both parties will have equal representation on the board of the project company.

Strategic implications

The Chamkharchhu-I project is located on the Chamkarchhu River in Zhemgang District. It is designed as a peaking run-of-river facility to meet Bhutan’s peak winter electricity requirements. Anil Sardana, Managing Director of Adani Power, stated that the project contributes to South Asia’s energy transition by reducing carbon intensity and advancing sustainability goals.

Dasho Chhewang Rinzin, MD of DGPC, emphasized that the collaboration strengthens Bhutan’s energy security and optimizes surplus clean energy exports to India. Both organizations remain engaged in evaluating additional opportunities under the wider development programme.

What the numbers show

The 49:51 equity structure indicates that while DGPC retains majority control, consistent with state-owned utility norms, Adani Power holds a significant minority stake sufficient to influence governance through equal board representation. The initial equity outlay of BTN 49 crore from Adani Power and BTN 51 crore from DGPC sets the baseline capitalization, though the filing notes that further capital contributions will be made in agreed proportions as the project progresses.

Adani Power has announced a significant increase in its long-term capacity plans, targeting 45 GW by FY2031. This strategic shift underscores the company's aggressive growth trajectory in the power generation sector.

To support this expansion, the company has outlined substantial capital expenditure requirements for the immediate future. The plan includes a projected capex of ₹23,000 crore for FY2027 and ₹30,000 crore for FY2028.

Capital Expenditure Roadmap

The investment schedule highlights a stepped-up spending pattern as the company moves closer to its 45 GW target. The following table summarizes the disclosed capital expenditure projections:

Strategic Capacity Goals

The move to 45 GW represents a major scale-up from current operations. The company has also referenced a broader investment plan of ₹2 lakh crore over several years to achieve these capacity targets. This indicates a sustained commitment to heavy asset creation in the thermal power segment.

What the Numbers Show

The progression from ₹23,000 crore in FY2027 to ₹30,000 crore in FY2028 indicates an accelerating pace of investment. This 30% year-on-year increase in planned capex suggests that the bulk of the physical infrastructure build-out is scheduled for the latter part of the forecast period, aligning with the final push toward the FY2031 capacity milestone.