The World Bank Group has approved a comprehensive $815 million financing package for the 1,125 MW Dorjilung Hydropower Project in Bhutan, a landmark initiative jointly owned by Tata Power (40%) and Druk Green Power Corporation (DGPC) (60%). The project is expected to generate over 4,500 GWh annually, with approximately 80% of the electricity supplied to India. It represents Bhutan’s largest public-private partnership (PPP) hydropower initiative and will expand the country’s installed capacity by nearly 40%.
The Dorjilung project marks a significant milestone in regional clean energy collaboration. Developed under a Special Purpose Vehicle, Dorjilung Hydro Power Limited, it positions Bhutan as a reliable exporter of renewable energy to India while strengthening regional energy security. Tata Power Trading Company Limited, a wholly owned subsidiary of Tata Power, will handle the importation of power into India and manage onward distribution.
As Bhutan’s largest public-private partnership hydropower project, Dorjilung will significantly enhance the country’s energy infrastructure. The project is located in the Mongar and Lhuentse districts and will deliver a nearly 40% increase in Bhutan’s installed capacity. With an annual generation of over 4,500 GWh, it will supply about 80% of its power to India, reinforcing cross-border energy cooperation and sustainable clean energy development in South Asia.
The initiative also holds considerable socio-economic benefits, including employment generation during construction and operation, stimulation of local entrepreneurship, and livelihood support for communities in the project districts. By integrating local development with clean energy production, the project demonstrates a holistic approach to sustainable infrastructure development.
The Dorjilung Hydropower Project strengthens enduring energy ties between Bhutan and India, highlighting the potential of regional partnerships in advancing shared economic and environmental goals. The initiative showcases effective collaboration among governments, multilateral institutions, and private sector players, contributing to South Asia’s clean energy transition.
