Tata Power and Druk Green Power sign Commercial Agreements in bhutan

New Delhi: November 21, 2025: The Tata Power Company Limited (Tata Power) has announced the signing of Commercial Agreements with Druk Green Power Corporation Limited (DGPC) for the implementation of the 1,125 MW Dorjilung project. The Project will be implemented through a Special Purpose Vehicle (SPV), with DGPC and Tata Power holding equity shares of 60% and 40%, respectively. The Run-of-the-River project, comprising six units of 187.5 MW each, is being developed on the Kurichhu River in Mongar, Bhutan. Designed with a six-hour pondage for peaking, Dorjilung represents a major step forward in expanding clean, reliable hydropower in the region.

Tata Power has committed an equity investment of approximately Rs 1,572 crore to be infused in tranches as per the agreed structure. With 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. On completion, the SPV will become an associate company of Tata Power, strengthening its strategic presence in the Himalayan renewable energy corridor.

The project is scheduled to be commissioned in September 2031, and 80% of its generation will be supplied to India, providing a significant boost to regional energy security and clean power availability. The project is supported by the World Bank, marking a milestone in cross-border clean-energy financing.

The Concession Agreement was signed in Thimphu, Bhutan, 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.

The Project Dorjilung marks the next chapter after the Dagachhu Hydro Power Project, where Tata Power holds a 26% stake, and the under-implementation 600 MW Khorlochhu Hydropower Project, where Tata Power also holds a 40% 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, which is aligned with Bhutan’s national priorities and India’s net-zero ambitions.