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Tata Power Company Ltd on Friday (November 21) said it has signed commercial agreements with Druk Green Power Corporation Ltd (DGPC) for the development of the 1,125 MW Dorjilung hydroelectric power project in Bhutan. The project will be executed through a special purpose vehicle (SPV), in which DGPC will hold a 60% equity stake and Tata Power will hold 40%.
The run-of-the-river project will consist of six units of 187.5 MW each and is being developed on the Kurichhu river in Mongar, Bhutan. Designed
with six-hour pondage for peaking, the project aims to expand clean and reliable hydropower capacity in the region.
Tata Power has committed an equity investment of about ₹1,572 crore, which will be infused in tranches based on the agreed structure. With a total project cost of ₹13,100 crore, Dorjilung will be Bhutan’s second-largest hydropower project and the largest public-private partnership (PPP) hydro project in the country.
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The company noted that 80% of the power generated will be supplied to India while also supporting Bhutan’s energy security and developmental objectives. The project is expected to be commissioned by September 2031. Upon completion, the SPV will become an associate company of Tata Power, strengthening its position in the Himalayan renewable energy corridor.
The project will provide a significant boost to regional energy security and clean power availability. Supported by the World Bank, it marks a milestone in cross-border clean-energy financing.
Dorjilung also marks the next chapter after the Dagachhu hydro power project, where Tata Power holds a 26% stake, and the under-implementation 600 MW Khorlochhu hydropower project, where Tata Power also holds a 40% stake.
Together, these projects advance the broader commitment of Tata Power and DGPC to jointly develop 5,000 MW of clean energy capacity in Bhutan, which is aligned with Bhutan’s national priorities and India’s net-zero ambitions.
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Shares of Tata Power Company Ltd ended at ₹386.95, down by ₹1.05, or 0.27%, on the BSE today, November 21.
