Tata Power has signed commercial agreements with Druk Green Power Corporation to acquire a 40 per cent stake in a special purpose vehicle (SPV) to develop the 1,125 MW Dorjilung Hydroelectric Power Project in Bhutan, the company said on Friday. The equity commitment is valued at approximately Rs 1,572 crore and will be infused in phases, PTI reported.Set up at a total project cost of Rs 13,100 crore, Dorjilung will be Bhutan’s second-largest hydropower project and the biggest public-private partnership (PPP) hydropower venture undertaken in the country. Developed on the Kurichhu River in Mongar, the run-of-the-river project comprises six generating units of 187.5 MW each and includes six-hour pondage for peaking supply.According to Tata Power, 80 per cent of the power generated will be supplied to India, contributing to cross-border clean energy flows backed by World Bank support. The project is scheduled for commissioning in September 2031 and will become an associate company of Tata Power upon completion.The commercial agreements were signed in Thimphu by Tata Power CEO and Managing Director Praveer Sinha and Druk Green Managing Director Dasho Chhewang Rinzin in the presence of Bhutan PM Lyonchhen Tshering Tobgay, PTI reported.Sinha said the project is designed to support Bhutan’s domestic energy demand while enabling surplus clean power exports to India. “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,” he said.
