·
Tata Power Commits ₹1,572 Cr
of equity investment, to be infused in tranches
·
Set to be Bhutan’s largest
Public–Private Partnership hydro project; Expected commissioning by September
2031
· 80% of power to flow to India, while supporting Bhutan’s energy security and developmental priorities
National : The Tata Power Company Limited (Tata Power), one of
India’s largest integrated power companies, today announced the signing of
Commercial Agreements with Druk Green Power Corporation Limited (DGPC) for the
implementation of the 1,125 MW Dorjilung project. The Project will be
implemented through a Special Purpose Vehicle (SPV), with DGPC and Tata Power
holding equity shares of 60% and 40%, respectively.
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 ₹1,572 crore to be infused in tranches as per the agreed structure.
At a total project cost of ₹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% 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, Bhutan, by Dr Praveer Sinha, CEO & Managing Director, Tata Power;
Dasho Chhewang Rinzin, Managing Director, Druk Green Power Corporation Limited
(DGPC) and Mr Karma P. Dorji, Director General, Ministry of Energy and Natural
Resources (MoENR), Government of Bhutan.
The signing was done in the august
presence of Prime Minister of Bhutan Lyonchhen Tshering Tobgay and Dasho Karma
Tshering, Secretary, MoENR; Dasho Karma
Y Raydi, Chairman, Druk Holding Investments; Ms 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% stake, and the
under-implementation 600 MW Khorlochhu Hydropower Project, where Tata Power
also holds a 40% 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 & 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.”
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 ₹40 billion for Bhutan’s energy projects further signals strong bilateral
support for sustainable infrastructure and green growth.
Dasho Chhewang Rinzin, Managing
Director, Druk Green Power Corporation Limited (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. We look forward to starting work on
other projects, also with Tata Power and other partners.”
Once operational, the Dorjilung Hydroelectric Power Project
will significantly enhance Tata Power’s renewable energy portfolio while
supporting Bhutan’s developmental priorities. As one of India’s largest
integrated power companies, Tata Power is proud to deepen its collaboration
with DGPC — a partnership built on trust, shared values, and a common vision
for sustainable regional progress.