Tata Power and DGPC Sign Agreement For Hydro Project
Tata Power Company announced on 21 November 2025 that it has signed a commercial agreement with Bhutan’s Druk Green Power Corporation Limited (DGPC) for the implementation of the 1,125 MW Dorjilung hydropower project in the largest public-private partnership (PPP) undertaken in the country. The project will be implemented on the Kurichhu river in Bhutan at a total cost of ₹13,100 crore. The project is also supported by World Bank.
The agreement was signed by Dr Praveer Sinha, CEO & Managing Director, Tata Power, Dasho Chhewang Rinzin, Managing Director, DGPC, and Mr Karma P. Dorji, Director General, Ministry of Energy and Natural Resources (MoENR), Government of Bhutan, in Thimpu.
A press release by Tata Power said that the project will be completed through a special purpose vehicle (SPV) between DGPC and Tata Power, each holding equity shares of 60% and 40% respectively. Tata Power will be investing approximately ₹1,572 crore as equity investments in six tranches as per the agreed structure. Once completed, the SPV will become Tata Power’s associate company.
The Dorjilung hydropower project is a run-of-the-river project, meaning it will be using the Kurichhu river’s natural flow to generate electricity without the need for a large reservoir. With six united of 187.5 MW to be developed along the Kurichhu river, it will be designed with a six-hour pondage for peaking.
The project is slated for commissioning in 2031, with 80% of its generation to be supplied to India.
Commenting on the signing of the agreement, Dr 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 added, “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 power project is the third power project between Tata Power and DGPC, the two being the 126 MW Dagachhu hydropower project and the 600 MW Khorlochhu hydropower plant. Tata Power holds a stake of 26% and 40% respectively in the other two.
