Tata Power and Druk Green Power Corporation Limited (DGPC) have signed commercial agreements to implement a 1,125 MW Dorjilung Hydroelectric Power Project in Bhutan. Tata Power commits approximately ₹1,572 crore of equity investment. The project, expected to be commissioned by September 2031, will see 80% of the power flow to India.
Strategic Hydro Project in Bhutan
Tata Power and Druk Green Power Corporation Limited (DGPC) have formalized commercial agreements to develop the 1,125 MW Dorjilung Hydroelectric Power Project in Bhutan. This project will be executed through a Special Purpose Vehicle (SPV), with DGPC holding 60% equity and Tata Power holding 40%.
Investment and Project Details
Tata Power has committed an equity investment of approximately ₹1,572 crore, to be invested in tranches. The Run-of-the-River project, located on the Kurichhu River in Mongar, Bhutan, will consist of six units, each generating 187.5 MW. It features a six-hour pondage for peaking power supply.
Projected Impact and Timeline
The Dorjilung project is expected to be commissioned by September 2031. 80% of the power generated will be supplied to India, enhancing regional energy security, while the remaining will support Bhutan’s energy needs. The project is supported by the World Bank.
Broader Collaboration
This project follows the Dagachhu Hydro Power Project, where Tata Power holds a 26% stake, and the Khorlochhu Hydropower Project, where Tata Power holds a 40% stake. Tata Power and DGPC aim to jointly develop 5,000 MW of clean energy capacity in Bhutan.
Leadership Statements
Dr. Praveer Sinha, CEO & Managing Director, Tata Power, noted that the Dorjilung project reinforces the company’s commitment to clean energy development in the region and will support Bhutan’s domestic energy aspirations and export clean power to India.
Dasho Chhewang Rinzin, Managing Director, Druk Green Power Corporation Limited (DGPC), expressed happiness in moving forward with the Dorjilung project with Tata Power, highlighting Bhutan’s hydropower potential and the strategic partnership’s contribution to regional progress.
Source: BSE
