Tata Power has signed commercial agreements with Druk Green Power Corporation (DGPC) to acquire a 40 per cent stake in a Special Purpose Vehicle (SPV) for Rs 15.72 billion to develop the 1,125 MW Dorjilung hydropower project in Bhutan.

With a total project cost of Rs 131 billion, Dorjilung will be Bhutan’s second-largest hydropower project and the biggest Public-Private Partnership (PPP) hydro development ever undertaken in the country. Tata Power’s equity commitment of Rs 15.72 billion will be infused in phases as per the agreed structure.

The run-of-the-river project, comprising six units of 187.5 MW each, is being built on the Kurichhu River in Mongar. Designed with six-hour pondage for peak operations, Dorjilung is a major step towards expanding clean, reliable hydropower in the Himalayan region. Upon completion, the SPV will become an associate company of Tata Power, reinforcing its strategic presence across the Himalayan renewable energy corridor.

The project is scheduled for commissioning in September 2031, with 80 per cent of its electricity to be supplied to India, significantly strengthening regional energy security and clean-power availability. Supported by the World Bank, Dorjilung marks an important milestone in cross-border clean-energy financing.

The concession agreement was signed in Thimphu by Tata Power CEO and Managing Director Praveer Sinha and DGPC Managing Director Dasho Chhewang Rinzin, in the presence of Bhutan Prime Minister Lyonchhen Tshering Tobgay.

Sinha said the project, Bhutan’s largest PPP-mode hydropower initiative, will fully support the nation’s domestic energy plans while enabling surplus clean-power exports to India. He added that the partnership enhances Tata Power’s hydropower portfolio and positions the Indo-Bhutan corridor as a model for mutually beneficial cross-border green-energy cooperation.