The Tata Power Company Limited has finalized a set of Commercial Agreements with Druk Green Power Corporation Limited (DGPC) for the development of the 1,125 MW Dorjilung Hydroelectric Power Project in Bhutan. The venture will be executed through a Special Purpose Vehicle in which DGPC will hold a 60% stake and Tata Power will own the remaining 40%.
The run-of-the-river project, consisting of six generating units of 187.5 MW each, is planned along the Kurichhu River in Mongar. With a six-hour storage capability for peak supply, Dorjilung represents a significant advancement in expanding dependable, clean hydropower capacity in the Himalayan region. Tata Power will invest roughly ₹1,572 crore in equity, infused in phases in accordance with the project framework.
Valued at ₹13,100 crore, Dorjilung will become Bhutan’s second-largest hydropower facility and the nation’s biggest public–private partnership in the hydro sector. Once completed, the SPV will be classified as an associate company of Tata Power, reinforcing the company’s footprint in cross-border renewable energy development. The project is targeted for commissioning in September 2031, with 80% of its output earmarked for export to India.
The project is backed by the World Bank, marking an important milestone in international financing for clean energy cooperation. The Concession Agreement was signed in Thimphu by Dr Praveer Sinha, CEO and Managing Director of Tata Power; Dasho Chhewang Rinzin, Managing Director of DGPC; and Karma P Dorji, Director General of Bhutan’s Ministry of Energy and Natural Resources (MoENR). The signing ceremony was attended by Bhutan’s Prime Minister Lyonchhen Tshering Tobgay along with senior government officials, representatives from Druk Holding Investments, Tata Power leadership, and members of the Indian Embassy and the World Bank.
This collaboration builds on a long history of energy partnerships between India and Bhutan. Dorjilung follows the Dagachhu project, in which Tata Power holds a 26% stake, and the ongoing 600 MW Khorlochhu project, where the company holds 40%. Collectively, these ventures form part of a broader plan by Tata Power and DGPC to jointly develop 5,000 MW of clean energy in Bhutan—aligned with Bhutan’s national goals and India’s net-zero commitments.
Speaking on the occasion, Dr Praveer Sinha emphasized that the Dorjilung venture strengthens regional clean-energy integration and will support Bhutan’s domestic power needs while enabling export of surplus electricity to India. He noted that the initiative reinforces the countries’ shared objective of building a robust Indo-Bhutan green energy corridor.
Bhutan’s recent commissioning of the 1,020 MW Punatsangchhu II project, along with the anticipated completion of the 1,200 MW Punatsangchhu I project in the coming years, signals strong momentum in the region’s hydro development. India’s recently announced concessional Line of Credit of ₹40 billion for Bhutan’s energy sector underscores the continued support for sustainable infrastructure.
Dasho Chhewang Rinzin of DGPC highlighted that the swift progress on Dorjilung, following the Khorlochhu project, demonstrates Bhutan’s commitment to advancing hydropower through strategic partnerships. He added that the collaboration with Tata Power will bolster Bhutan’s role as a leader in clean energy within South Asia and set a new benchmark for cross-border green cooperation. Once operational, Dorjilung will significantly enlarge Tata Power’s renewable energy base and contribute to Bhutan’s long-term development priorities.
Tata Power, part of the Tata Group, manages a diversified 15.9 GW power portfolio across generation, transmission, distribution, trading, storage, and solar manufacturing. With 7.0 GW of clean energy—44% of its total capacity—the company is a key driver of India’s energy transition and aims to achieve net-zero emissions by 2045, serving nearly 13 million customers nationwide.
