India's leading power company Tata Power has taken a major step to develop the 1,125 MW Dorjeilung Hydropower Project located in Bhutan. The company is a subsidiary of Bhutan's Druk Green Power Corporation Limited (DGPC) A commercial agreement has been signed with This project will further strengthen India-Bhutan energy cooperation.
A special purpose vehicle (SPV) will be formed. This SPVin DGPCwill hold 60% share and the remaining 40% share will be held by Tata Power. As per the agreement, Tata Power in the coming years ₹1,572 will invest crores in phases.
The project is being developed on the Kurichu River in the Mongar region of Bhutan. It will have 6 units with a capacity of 187.5 MW. This makes it not only Bhutan's largest hydroelectric project, but the country's largest public-private partnership (PPP) The project will be based on the model.
The total cost of the Dorjeilung project is approx ₹13,100 will be crores. The project will receive technical and strategic support from the World Bank, which will strengthen the financial arrangement. The construction of this hydropower project is likely to be completed and operational by September 2031.
Importantly, 80% of the total electricity generated from the project will be exported to India. Due to this, energy supply will become more stable in the states of Northeast and East India. Also, bilateral energy relations between India and Bhutan will be further strengthened.
This investment by Tata Power is considered a major step in the area of clean energy and cross-border cooperation. After the project is completed, it will become one of the most important hydropower projects in South Asia.
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