Tata Power Signs Pact for 1,125 MW Dorjilung Project

Tata Power Company declared the execution of Commercial Agreements with Druk Green Power Corporation (DGPC) for the launch of the 1,125 MW Dorjilung project. The Project will be carried out via a Special Purpose Vehicle (SPV), where DGPC and Tata Power possess equity shares of 60% and 40%, respectively.

The Run-of-the-River initiative, consisting of six 187.5 MW units, is being constructed on the Kurichhu River in Mongar, Bhutan. Featuring a six-hour pondage for peak performance, Dorjilung signifies a significant advancement in enhancing clean, dependable hydropower in the area. Tata Power has pledged an equity investment of around Rs 1,572 crore, which will be injected in phases according to the established framework.

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With a total expenditure of Rs 13,100 crore, Dorjilung will be Bhutan's second-largest hydropower initiative and the most significant Public-Private Partnership (PPP) hydro project ever executed in the nation. Upon completion, the SPV will transform into an associate company of Tata Power, enhancing its strategic footprint in the Himalayan renewable energy corridor.

The project is scheduled to commence operations in September 2031, with 80% of its output directed to India, offering a considerable enhancement to local energy security and access to clean power. The project receives backing from the World Bank, signifying a significant achievement in international clean-energy funding.