Tata Power and DGPC Partner on ₹13,100 Crore Dorjilung Hydropower Project in Bhutan

Tata Power and Bhutan’s Druk Green Power Corporation (DGPC) have signed commercial agreements to jointly develop the 1,125 MW Dorjilung Hydroelectric Project in Mongar, Bhutan, reported ETEnergyWorld citing Tata Power’s stock exchange filing and detailing the 1,125 MW project structure.

The project will be executed through a special purpose vehicle (SPV), with DGPC holding 60% equity and Tata Power 40%. At ₹13,100 crore total cost, it will be Bhutan’s second-largest hydropower project and the largest public-private partnership (PPP) hydro project in the country.

Key highlights of the Dorjilung project

• Capacity: 1,125 MW, divided into six units of 187.5 MW each.
• Location: Kurichhu River, Mongar district, Bhutan.
• Design: Run-of-the-river project with six-hour pondage for peaking, ensuring reliable power supply.
• Equity structure: DGPC – 60%, Tata Power – 40%.
• Investment: Tata Power will infuse ₹1,572 crore in equity, in tranches.
• Total cost: ₹13,100 crore.
• Significance:
  • Bhutan’s second-largest hydropower project.
  • The largest PPP hydro project ever undertaken in Bhutan.
  • Strengthens India-Bhutan energy cooperation, with ~80% of generated clean power expected to be supplied to India.

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Strategic importance

• Regional energy security: Contributes significantly to Bhutan’s hydropower exports, a major revenue source.
• India–Bhutan cooperation: Supports the bilateral plan to expand hydropower cooperation to 5,000 MW.
• Clean energy push: Provides peaking power that complements India’s solar and wind expansion.
• Economic impact: Creates jobs, boosts local economies, and strengthens Bhutan’s energy independence.

Why this matters

This agreement marks a milestone in South Asia’s energy collaboration, showcasing how public-private partnerships can unlock large-scale renewable projects. For Tata Power, it expands its international footprint in clean energy, while for Bhutan, it cements its role as a regional hydropower hub.