Tata Power Company Ltd announced that they have entered into commercial agreements with Druk Green Power Corporation Ltd for the implementation of the 1,125 MW Dorjilung hydroelectric power project in Bhutan.

The project will be carried out through a special purpose vehicle (SPV), with DGPC owning 60 percent equity and Tata Power owning 40 percent.

The run-of-the-river project being developed on the Kurichhu river in Mongar, Bhutan will have six units with a capacity of 187.5 MW each.

Also Read: Karnataka to Launch 5 World-Class Aerospace, Defense Parks

This project is designed with six hours of pondage for peaking purposes, with the goal of increasing the clean and dependable hydropower capacity in the area.

“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.”, says Praveer Sinha, CEO & Managing Director, Tata Power.

Tata Power has pledged to invest approximately Rs.1,572 crore in Dorjilung in stages according to the agreed plan. Dorjilung, with a total cost of Rs.13,100 crore, will become Bhutan's second biggest hydropower project and the largest public-private partnership hydro project in the country.

Also Read: Swiggy Expands Crew Travel and Lifestyle App

The company stated that 80 percent of the electricity produced will be sent to India, while also helping to support Bhutan's energy security and development goals. The project is anticipated to be operational by September 2031. Once finished, the special purpose vehicle (SPV) will be a subsidiary of Tata Power, enhancing its presence in the Himalayan renewable energy region.

The project will greatly enhance energy security and the availability of clean power in the region. With backing from the World Bank, it represents a significant achievement in funding for clean energy projects across borders.

Dorjilung is the next project following the Dagachhu hydro power project, in which Tata Power has a 26 percent ownership, and the 600 MW Khorlochhu hydropower project, currently being implemented, in which Tata Power has a 40 percent stake.

Also Read: Salesforce Partners with SmartBridge

These projects are moving forward in the shared goal of Tata Power and DGPC to develop 5,000 MW of clean energy capacity in Bhutan, in line with both Bhutan's national priorities and India's net-zero ambitions.

“This partnership further strengthens our hydropower portfolio and positions the Indo–Bhutan energy corridor as a leading model for mutually beneficial, cross-border green energy cooperation”, Sinha says.