Tata Power Company Ltd. has signed commercial agreements with Bhutan’s Druk Green Power Corporation Ltd. (DGPC) for the implementation of the 1,125 MW Dorjilung hydropower project.

The project will be executed through a Special Purpose Vehicle (SPV) in which DGPC will hold 60 per cent equity and Tata Power 40 per cent. The Run-of-the-River scheme consists of six units of 187.5 MW each and is being developed on the Kurichhu River in Bhutan’s Mongar district.

Designed with six hours of pondage for peaking operations, Dorjilung marks a significant expansion of clean and dependable hydropower capacity in the region, Tata Power said.

Tata Power has committed an equity investment of about Rs 15.72 billion, to be infused in stages under the agreed structure. With a total project cost of Rs 131 billion, Dorjilung will become Bhutan’s second-largest hydropower development and the biggest hydro project under a Public–Private Partnership model in the country.

Once complete, the SPV will be classified as an associate company of Tata Power, strengthening the firm’s position in the Himalayan renewable energy corridor. The project is expected to be commissioned in September 2031, with 80 per cent of its power generation allocated to India, significantly improving regional clean-energy availability and energy security. The World Bank is supporting the project, marking a landmark in cross-border clean-energy financing.

Praveer Sinha, CEO and Managing Director of Tata Power, said the Dorjilung project highlights the company’s commitment to expanding clean energy across the region. He added that Bhutan’s largest hydro PPP will support the nation’s domestic energy ambitions while enabling the export of surplus clean power to India, reinforcing regional energy stability.