Adani Power and Druk Green Power (DGPC), Bhutan's state-owned generation utility, have signed a shareholders agreement to develop the 770 MW Chamkharchhu-I Hydroelectric Project in Bhutan, Adani Power said on Tuesday. The agreement covers the proposed project in the Kingdom of Bhutan and represents the second major hydropower collaboration between the two partners.

The peaking run-of-river project will be built on the Chamkarchhu River in Zhemgang District in central Bhutan. It will be implemented under the build, own, operate and transfer (BOOT) model through a 49:51 equity partnership between Adani Power and DGPC, respectively, with a 30-year concession beginning on the commercial operation date (COD).

The collaboration follows the agreement for the 570 MW Wangchhu Hydroelectric Project signed in September 2025. It is also part of a wider memorandum of understanding signed by the Adani Group and DGPC in May 2025 for the development of 5,000 MW of hydropower capacity.

The signing ceremony was attended by Bhutan Prime Minister Lyonchhen Dasho Tshering Tobgay and other dignitaries. Construction is expected to begin in the first half of 2027, while commissioning is targeted within six years of the start of construction.

The project is intended to expand Bhutan's clean energy generation capacity and deepen regional energy cooperation. The partners said it would support Bhutan's energy security, especially during winter, and enable surplus green power to be optimised and exported to India during summer, while contributing to lower carbon intensity and shared sustainability goals.