Expanding cross-border clean energy infrastructure across South Asia, Indian power giant The Tata Power Company Limited and Bhutan’s Druk Green Power Corporation Limited (DGPC) have formally signed commercial agreements to implement the 1,125 MW Dorjilung Hydroelectric Power Project in Mongar, Bhutan. Totaling an estimated project cost of ₹13,100 crore ($1.7 billion), Dorjilung will become Bhutan’s second-largest hydropower installation and the largest public-private partnership (PPP) hydro development in the Kingdom’s history. The initiative is executed through a dedicated Special Purpose Vehicle (SPV)—Dorjilung Hydro Power Limited (DHPL)—with DGPC holding a controlling 60% equity stake and Tata Power retaining 40% alongside a committed equity investment of approximately ₹1,572 crore. Supported heavily by a $515 million World Bank Group multilateral financing package, the project marks a strategic shift toward sustainable investment-based models over direct sovereign borrowing.
Slated for full commercial commissioning by September 2031, the run-of-the-river project is situated on the Kurichhu River and will house six generation units of 187.5 MW each with a six-hour pondage system for peak demand. Once operational, the plant will generate over 4,500 GWh of clean electricity annually, increasing Bhutan’s national energy generation by 40%. Under the off-take structure, 80% of the generated clean power will be exported to India—primarily during peak summer and monsoon months—helping close seasonal energy deficits and bolstering regional grid stability. The remaining output will serve Bhutan’s domestic winter demand to eliminate reliance on costly seasonal imports. The signing forms part of a broader strategic agreement between Tata Power and DGPC to jointly build 5,000 MW of renewable power in Bhutan.