JSW Neo and Bhutan's Druk Green Power Corporation have signed an agreement to jointly develop the 920 megawatt (MW) Punatsangchhu-III hydroelectric project in Wangdue Phodrang District, marking JSW's first power generation venture outside India. The pact was concluded in the presence of the Prime Minister of Bhutan and establishes a joint venture company to advance the scheme. JSW Energy said the arrangement formalises collaboration on a strategically significant Himalayan hydropower asset.

Under the shareholders' agreement, Druk Green Power Corporation will hold 51 per cent of the joint venture and JSW Neo Energy will hold 49 per cent, with both parties jointly preparing a detailed project report. The statement described DGPC as a wholly owned subsidiary of Druk Holding & Investments, the commercial arm of the Royal Government of Bhutan. The partners will combine design, engineering and development capabilities to advance project implementation.

Bhutan is noted for a power system built primarily on clean hydropower and is expanding renewable capacity such as solar, with Himalayan river systems offering substantial untapped hydroelectric potential. The announcement positioned the project within the framework of longstanding bilateral cooperation on large hydro assets with India. DGPC was described as bringing decades of operating experience across Bhutan's hydropower portfolio.

JSW Energy reported a total locked-in generation capacity of 32.4 gigawatt (GW), comprising 14.9 GW operational, 13.5 GW under construction and a four GW pipeline. In hydro, the company stated an operating portfolio of 1,781 MW and noted its standing as the largest private hydropower generator in India. The company highlighted existing experience in developing and operating large hydroelectric assets in Himalayan terrain.

The group reported 29.6 gigawatt hour (GWh) of locked-in energy storage capacity, made up of 26.4 GWh of pumped hydro storage and three point two GWh of battery energy storage systems. JSW Energy set targets to reach 30 GW of generation capacity and 40 GWh of energy storage by 2030 and to achieve carbon neutrality by 2050. The partners said the Punatsangchhu-III project will draw on combined technical expertise to progress development and align with Bhutan's clean energy ambitions.