Wedoany.com Report-Nov. 30, Tata Power Company has entered into commercial agreements with Druk Green Power Corporation (DGPC) for the development of the 1,131 MW Dorjilung hydroelectric project in Bhutan.

The concession agreement was signed in Bhutan’s capital, Thimphu, in the presence of Prime Minister Lyonchhen Tshering Tobgay.

The run-of-the-river project, located on the Kurichhu River in Mongar district, will comprise six generating units of 187.5 MW each and include six-hour daily pondage for peak-load support. It will be implemented through a special purpose vehicle in which DGPC holds 60 percent equity and Tata Power 40 percent. Tata Power's equity contribution is estimated at approximately Rs 15.72 billion (US$175 million), to be invested in phases.

With a total project cost of around Rs 131 billion, Dorjilung will become Bhutan's second-largest hydropower facility and the country's largest public-private partnership hydropower initiative. Commissioning is targeted for September 2031. Upon completion, 80 percent of the generated electricity will be exported to India, while the remainder will serve Bhutan's domestic requirements. The World Bank is providing support to the project.

The concession agreement was signed in Thimphu by Praveer Sinha, CEO and Managing Director of Tata Power; Dasho Chhewang Rinzin, Managing Director of DGPC; and Karma P. Dorji, Director General of Bhutan's Ministry of Energy and Natural Resources. The ceremony was attended by Bhutan's Prime Minister, Lyonchhen Tshering Tobgay, along with senior officials from Bhutan, the Indian Embassy, and the World Bank.

Praveer Sinha 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. We thank the governments of Bhutan and India, the World Bank and DGPC for their support and trust. 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."

Dasho Chhewang Rinzin said: "We are extremely happy to be moving ahead with the implementation of the Dorjilung project so soon after the Khorlochhu project in partnership with Tata Power. Bhutan's huge hydropower potential positions it at the heart of South Asia's clean energy future. Our strategic partnership with Tata Power on the Dorjilung project reflects Bhutan's commitment to collaborative partnerships for regional progress. By combining Bhutan's hydropower capabilities with India's technical expertise, we are creating a future of reliable, clean energy that benefits both nations and sets a global benchmark in green cooperation. We look forward to starting work on other projects, also with Tata Power and other partners."

The Dorjilung project builds on earlier joint ventures between Tata Power and DGPC, including the operational Dagachhu plant and the ongoing 600 MW Khorlochhu project, advancing the shared objective of developing 5 GW of clean hydropower capacity in Bhutan.