Tata Power and Druk Green Power sign agreements for Dorjilung hydropower project in Bhutan
- November 21, 2025
Tata Power Company Ltd has announced the signing of commercial agreements with Druk Green Power Corporation Ltd (DGPC) for the implementation of the 1,125-MW Dorjilung project.
In a release, Tata Power said that Project will be implemented through a special purpose vehicle (SPV), with DGPC and Tata Power holding equity shares of 60 per cent and 40 per cent, respectively.
Project details
The Run-of-the-River project, comprising six units of 187.5 MW each, is being developed on the Kurichhu River in Mongar, Bhutan. Tata Power has committed an equity investment of approximately Rs.1,572 crore to be infused in tranches as per the agreed structure.
At a total project cost of Rs.13,100 crore, Dorjilung will be Bhutan’s second-largest hydropower project, and the largest Public–Private Partnership (PPP) hydro project ever undertaken in the country.
The World Bank-supported project is slated for commissioning in September 2031, and 80 per cent of its generation will be supplied to India.
Tata Power-DGPC partnership
The partnership between Tata Power and DGPC builds on decades of energy cooperation that have shaped South Asia’s clean energy landscape. Dorjilung marks the next chapter after the Dagachhu Hydro Power Project, where Tata Power holds a 26 per cent stake, and the under-implementation 600-MW Khorlochhu hydropower project, where Tata Power also holds a 40 per cent stake. Together, these projects advance the broader commitment of Tata Power and DGPC to jointly develop 5,000 MW of clean energy capacity in Bhutan.
Bilateral support
Apart from the recent commissioning of the 1,020-MW Punatsangchhu II hydroelectric project and the expected completion of the 1,200-MW Punatsangchhu I hydroelectric project within the next four years, the Government of India’s recent announcement of a concessional Line of Credit of Rs.40 billion for Bhutan’s energy projects further signals strong bilateral support for sustainable infrastructure and green growth, the Tata Power release said.
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Featured photograph shows the agreement signing ceremony held at Thimphu, Bhutan, on November 21, 2025. The Concession Agreement was signed by Dr Praveer Sinha, CEO & Managing Director, Tata Power; Dasho Chhewang Rinzin, Managing Director, Druk Green Power Corporation Limited (DGPC) and Mr Karma P. Dorji, Director General, Ministry of Energy and Natural Resources (MoENR), Government of Bhutan. The signing was done in the august presence of Prime Minister of Bhutan Lyonchhen Tshering Tobgay and Dasho Karma Tshering, Secretary, MoENR; Dasho Karma Y Raydi, Chairman, Druk Holding Investments; Ms Anjali Pandey, President, Generation Business, Tata Power and senior officials of the Indian Embassy in Bhutan and the World Bank.