Tata Power, DGPC Sign Commercial Agreements for 1,125 MW Dorjilung Hydropower Project in Bhutan

The Tata Power Company Limited, one of India’s largest integrated power companies, has signed Commercial Agreements with Druk Green Power Corporation Limited (DGPC) for the implementation of the 1,125 MW Dorjilung Hydroelectric Project in Bhutan. The project will be developed through a Special Purpose Vehicle (SPV) with DGPC holding 60% equity and Tata Power 40%.

Planned on the Kurichhu River in Mongar, the run-of-the-river project comprises six units of 187.5 MW each and includes a six-hour pondage for peak power supply. Tata Power will invest approximately ₹1,572 crore in equity under a phased infusion model. The total project cost is estimated at ₹13,100 crore, making Dorjilung Bhutan’s second-largest hydropower project and the country’s biggest PPP-based hydro development.

Once operational, expected by September 2031, the project will supply 80% of its generation to India, significantly boosting regional clean-energy availability and energy security. Backed by the World Bank, the project marks a milestone in cross-border green infrastructure financing.

The Concession Agreement was signed in Thimphu by Dr Praveer Sinha, CEO & MD, Tata Power; Dasho Chhewang Rinzin, Managing Director, DGPC; and Karma P. Dorji, Director General, MoENR, Bhutan. The ceremony was witnessed by Bhutan’s Prime Minister Lyonchhen Tshering Tobgay and senior officials from the Government of Bhutan, Tata Power, the Indian Embassy, and the World Bank.

Dorjilung builds on the long-standing Indo-Bhutan energy partnership, which includes the Dagachhu Hydropower Project—where Tata Power holds 26% stake—and the under-construction 600 MW Khorlochhu Hydropower Project, where Tata Power has 40% stake. Both companies remain committed to jointly developing 5,000 MW of clean energy capacity in Bhutan, aligned with Bhutan’s national energy strategy and India’s net-zero goals.

Dr Praveer Sinha stated that the project reinforces Tata Power’s commitment to regional clean-energy expansion and strengthens the Indo-Bhutan renewable energy corridor. DGPC’s Managing Director Dasho Chhewang Rinzin emphasized that Bhutan’s hydropower potential positions it as a pillar of South Asia’s green-energy future.

The signing comes amid major hydropower progress in Bhutan, including the commissioning of the 1,020 MW Punatsangchhu II and anticipated completion of the 1,200 MW Punatsangchhu I within four years. India’s recent announcement of a ₹40 billion concessional Line of Credit for Bhutan’s energy projects further underscores strong bilateral cooperation.

Dorjilung is expected to significantly expand Tata Power’s renewable-energy portfolio while advancing Bhutan’s economic and sustainable development objectives.