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Tata Power and DGPC sign Commercial Agreements for 1,125 MW Hydroelectric Power Project in Bhutan
21st November 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 ₹1,572 crore to be infused in tranches as per the agreed structure
At a total project cost of ₹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 slated for commissioning 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 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% 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
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