Tata Power Company Ltd. has announced the signing of Commercial Agreements with Druk Green Power Corporation Ltd (DGPC) of Bhutan 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 said.
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, Tata Power said.
Praveer Sinha, CEO & Managing Director, Tata Power, said: “The Dorjilung project reinforces our commitment to accelerating clean energy development in the region. As Bhutan’s largest hydro project under the PPP model, it is designed to fully support Bhutan’s domestic energy aspirations while also enabling the export of surplus clean power to India, strengthening regional energy security.”
Published – November 21, 2025 09:21 pm IST
