Tata Power, DGPC Seal Pact For 1,125 MW Dorjilung Hydro Project
POWER & RENEWABLE ENERGY

Tata Power, DGPC Seal Pact For 1,125 MW Dorjilung Hydro Project

Tata Power Company has signed commercial agreements with Druk Green Power Corporation (DGPC) for the development of the 1,125 MW Dorjilung hydropower project. The project will be executed through a Special Purpose Vehicle (SPV), with DGPC holding 60 per cent equity and Tata Power holding the remaining 40 per cent.

The run-of-the-river project, featuring six units of 187.5 MW each, is located on the Kurichhu River in Mongar, Bhutan. Designed with six-hour pondage for peak generation, Dorjilung marks a substantial step in expanding clean and reliable hydropower in the region. Tata Power has committed an equity investment of about Rs 15.72 billion, to be infused in phases as per the agreed structure.

With a total estimated cost of Rs 131 billion, Dorjilung will become Bhutan’s second-largest hydropower project and the largest Public-Private Partnership (PPP) hydro venture ever undertaken in the country. Once completed, the SPV will be classified as an associate company of Tata Power, strengthening the company's strategic presence across the Himalayan renewable energy corridor.

Scheduled for commissioning in September 2031, the project will supply 80 per cent of its power to India, significantly enhancing regional energy security and clean-power availability. The initiative is supported by the World Bank, marking a key milestone in cross-border clean-energy financing.

Tata Power Company has signed commercial agreements with Druk Green Power Corporation (DGPC) for the development of the 1,125 MW Dorjilung hydropower project. The project will be executed through a Special Purpose Vehicle (SPV), with DGPC holding 60 per cent equity and Tata Power holding the remaining 40 per cent. The run-of-the-river project, featuring six units of 187.5 MW each, is located on the Kurichhu River in Mongar, Bhutan. Designed with six-hour pondage for peak generation, Dorjilung marks a substantial step in expanding clean and reliable hydropower in the region. Tata Power has committed an equity investment of about Rs 15.72 billion, to be infused in phases as per the agreed structure. With a total estimated cost of Rs 131 billion, Dorjilung will become Bhutan’s second-largest hydropower project and the largest Public-Private Partnership (PPP) hydro venture ever undertaken in the country. Once completed, the SPV will be classified as an associate company of Tata Power, strengthening the company's strategic presence across the Himalayan renewable energy corridor. Scheduled for commissioning in September 2031, the project will supply 80 per cent of its power to India, significantly enhancing regional energy security and clean-power availability. The initiative is supported by the World Bank, marking a key milestone in cross-border clean-energy financing.

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