Tata Power to invest Rs 1,572 crore in Bhutan’s Dorjilung hydropower project

Tata Power has signed an agreement with Bhutan’s Druk Green Power Corporation Ltd. (DGPC) to support the development of the 1,125 MW Dorjilung hydropower project.

The company announced the pact in a release issued on Friday.

Tata Power will invest Rs 1,572 crore as equity in the project through a Special Purpose Vehicle. The amount will be infused in tranches. The total project cost is Rs 13,100 crore, making Dorjilung Bhutan’s second-largest hydropower project and the biggest Public–Private Partnership hydropower venture in the country.

DGPC will hold 60% equity in the World Bank–backed project, while Tata Power will own the remaining 40%. The project is expected to be commissioned in September 2031. The release said that about 80% of the electricity generated will be supplied to India.

Tata Power CEO and Managing Director Praveer Sinha said that the Dorjilung project reinforced the company’s commitment to accelerating clean-energy development in the region. He stated that, as Bhutan’s largest hydro project under the PPP model, it was designed to fully support Bhutan’s domestic energy aspirations while also enabling the export of surplus clean power to India, thereby strengthening regional energy security.

The Dorjilung project will be a run-of-the-river hydropower plant. It will have six units of 187.5 MW each and is being built on the Kurichhu River in Mongar, Bhutan. The release noted that the project is “designed with a six-hour pondage for peaking” and represents a significant advancement in expanding clean and reliable hydropower.

DGPC Managing Director Dasho Chhewang Rinzin said that by combining Bhutan’s hydropower capabilities with India’s technical expertise, the two countries were creating a future of reliable, clean energy that would benefit both nations and set a global benchmark in green cooperation.