In a significant boost to regional energy cooperation, Druk Green Power Corporation Limited (DGPC) and India’s Tata Power have formalised a shareholder agreement to develop the 1,125-megawatt Dorjilung Hydropower Project, marking one of the largest public-private infrastructure ventures in Bhutan’s history.
The project, to be constructed on the Kurichhu River, will operate under a Public-Private Partnership model, with DGPC retaining a 60 percent stake and Tata Power holding the remaining 40 percent. Tata Power’s financial commitment stands at INR 15.72 billion, while the overall investment for the project is estimated at Nu 131 billion. Once operational, approximately 80 percent of the electricity generated will be exported to India, reinforcing Bhutan’s role as a key power supplier to its neighbour.
Scheduled for commissioning in September 2031, the Dorjilung project will be Bhutan’s second-largest hydropower development and will receive financial and technical backing from the World Bank. The initiative is expected to contribute significantly to Bhutan’s economic growth while also supporting India’s rising power demand.
Prime Minister Tshering Tobgay underscored the strategic value of the partnership, describing it as a continuation of the strong bilateral relationship between the two countries. He encouraged Tata Power to establish a permanent presence in Bhutan and prioritise the hiring and training of Bhutanese professionals, highlighting the importance of local capacity building.
Tata Power, for its part, expressed optimism about the project timeline, indicating that preliminary works could begin within the next eight to ten months. The company has also announced plans to open an office in Bhutan by January next year, a move seen as a step toward closer operational coordination.
The Dorjilung agreement builds on a longstanding history of collaboration in the energy sector between Bhutan and India. Officials have hinted that this momentum could soon extend further, with a potential third agreement for the Nyera Amari hydropower project being discussed for future consideration.
As Bhutan continues to harness its vast hydropower potential, initiatives such as Dorjilung are poised to strengthen economic resilience and deepen cross-border partnerships, positioning the country as a cornerstone of clean energy development in the region.
