Tata Power signs agreement for Dorjilung project - Bhutan's 2nd largest hydro power project

Tata Power Company announced the signing of Commercial Agreements with Druk Green Power Corporation (DGPC) for the implementation of the 1,125 MW Dorjilung project. The Project will be implemented through a Special Purpose Vehicle (SPV), with DGPC and Tata Power holding equity shares of 60% and 40%, respectively.

The Run-of-the-River project, comprising six units of 187.5 MW each, is being developed on the Kurichhu River in Mongar, Bhutan. Designed with a six-hour pondage for peaking, Dorjilung represents a major step forward in expanding clean, reliable hydropower in the region. Tata Power has committed an equity investment of approximately Rs 1,572 crore to be infused in tranches as per the agreed structure.

At a total project cost of Rs 13,100 crore, Dorjilung will be Bhutan's second-largest hydropower project, and the largest Public-Private Partnership (PPP) hydro project ever undertaken in the country. On completion, the SPV will become an associate company of Tata Power, strengthening its strategic presence in the Himalayan renewable energy corridor.

The project is slated for commissioning in September 2031, and 80% of its generation will be supplied to India, providing a significant boost to regional energy security and clean power availability. The project is supported by the World Bank, marking a milestone in cross-border clean-energy financing.

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