JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy, has entered into a Shareholders’ Agreement with Bhutan’s Druk Green Power Corporation Limited (DGPC). This agreement establishes a joint venture company to develop the 920 MW Punatsangchhu-III Hydroelectric Project in Bhutan. The JV will see DGPC hold 51% equity and JSW Neo Energy hold 49%, marking JSW Energy’s first power generation venture outside India.
JSW Neo Energy Partners for Bhutan Hydro Project
JSW Energy Limited announced that its wholly owned subsidiary, JSW Neo Energy Limited (“JSWNEL”), has executed a Shareholders’ Agreement (“SHA”) with Druk Green Power Corporation Limited (“DGPC”). This collaboration is for the joint development of the 920 MW Punatsangchhu-III Hydroelectric Project located in the Kingdom of Bhutan. The project will be developed on a Build-Own-Operate-Transfer (“BOOT”) basis.
Joint Venture Structure and Investment
A special purpose joint venture company is proposed to be incorporated in Bhutan for this project. In this JV, DGPC will hold a 51% equity stake, while JSWNEL will hold 49%. JSWNEL’s initial contribution to the JV is stated as BTN 245 million, with further infusions contingent upon the project’s development. This marks a significant milestone as it is JSW Energy’s first power generation venture outside of India.
Project and Strategic Significance
The Punatsangchhu-III Hydroelectric Project is a Run-of-the-River scheme situated on the Punatsangchhu River in the Wangdue Phodrang District. Bhutan is recognized for its extensive untapped hydroelectric potential and commitment to clean energy. This partnership is expected to leverage DGPC’s established expertise in developing and operating large hydro assets, aligning with JSW Energy’s strategy to expand its green portfolio and achieve carbon neutrality by 2050.
Source: BSE
