Tata Power Signs Commercial Agreements for 1,125 MW Hydroelectric Project in Bhutan
Tata Power has signed commercial agreements with Druk Green Power Corporation Limited for the 1,125 MW Dorjilung Hydroelectric Power Project in Bhutan. The project, valued at ₹13,100.00 crore, will be Bhutan's largest Public-Private Partnership hydro project. Tata Power will invest ₹1,572.00 crore for a 40% equity stake, with DGPC holding the remaining 60%. The project is expected to be commissioned by September 2031, with 80% of the power generated to be supplied to India. This collaboration is part of a larger commitment to jointly develop 5,000 MW of clean energy capacity in Bhutan.

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Tata Power Company Limited has signed commercial agreements with Druk Green Power Corporation Limited (DGPC) for the implementation of the 1,125 MW Dorjilung Hydroelectric Power Project in Bhutan. This collaboration marks a significant step in cross-border clean energy cooperation between India and Bhutan.
Project Details
The Dorjilung Hydroelectric Power Project, to be built on the Kurichhu River in Mongar, Bhutan, is set to become the country's largest Public-Private Partnership (PPP) hydro project. Here are the key details:
| Project Aspect | Details |
|---|---|
| Total Capacity | 1,125 MW |
| Number of Units | 6 x 187.5 MW |
| Total Project Cost | ₹13,100.00 crore |
| Tata Power's Equity Investment | ₹1,572.00 crore |
| Equity Structure | DGPC: 60%, Tata Power: 40% |
| Expected Commissioning | September 2031 |
| Power Distribution | 80% to India, 20% for Bhutan |
Strategic Importance
This project is significant for several reasons:
Regional Energy Security: The project will supply 80% of its generated power to India, boosting clean energy availability in the region.
Bhutan's Largest PPP: At ₹13,100.00 crore, it represents Bhutan's largest public-private partnership in the hydropower sector.
Cross-Border Financing: The World Bank's support for the project highlights the growing importance of international cooperation in clean energy development.
Tata Power's Expansion: Upon completion, the project will become an associate company of Tata Power, strengthening its presence in the Himalayan renewable energy corridor.
Collaborative Efforts
Tata Power has committed an equity investment of ₹1,572.00 crore for the project development. This substantial investment underscores the company's commitment to expanding its clean energy portfolio and fostering international partnerships.
The signing of commercial agreements between Tata Power and DGPC marks a crucial milestone in the project's progression. It solidifies the partnership and sets the stage for the implementation phase of this ambitious hydroelectric venture.
Broader Implications
This project is part of a larger commitment between Tata Power and DGPC to jointly develop 5,000 MW of clean energy capacity in Bhutan. It aligns with Bhutan's national priorities and India's net-zero ambitions, showcasing how international cooperation can drive sustainable development and energy security in South Asia.
The Dorjilung project, along with other ongoing and planned hydroelectric initiatives, is set to play a crucial role in shaping the clean energy landscape of the region for years to come.
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