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Tata Power to Co-Develop Bhutan’s 1125 MW Dorjilung Hydropower Project

Public-Private Partnership strengthens Indo-Bhutan energy cooperation; World Bank-funded project to supply clean energy by 2032

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Tata Power to Co-Develop Bhutan’s 1125 MW Dorjilung Hydropower Project

Location and Geography:

  • The Dorjilung Hydropower Project is located in the eastern districts of Lhuentse and Mongar in Bhutan.
  • It is situated on the Kurichhu River, a tributary of the Drangmechhu, which flows into India.
  • The site lies in a mountainous region well suited for run-of-river hydropower generation.

Technical Specifications:

  • Project type: Run-of-river hydropower project
  • Installed capacity: 1125 megawatts
  • Annual electricity generation: Approximately 4.5 terawatt-hours
  • Dam type: Concrete gravity dam with a height of approximately 139.5 meters
  •  Design discharge: 287 cubic meters per second
  •  Headrace tunnel length: 15 kilometers
  •  Powerhouse: Underground, housing six Francis-type turbines

Project Cost and Funding:

  • Total estimated cost: 1.7 billion US dollars
  • Financing institution: World Bank
  • Development model: Public-Private Partnership (PPP)
  • Partnership and Ownership Structure
  •  In November 2024, Bhutan’s Druk Green Power Corporation (DGPC) signed a Memorandum of Understanding (MoU) with India’s Tata Power Company Limited.
  •  The project will be jointly developed under a Public-Private Partnership model.
  •  Ownership division: DGPC will hold 60 percent, and Tata Power will hold 40 percent.

Implementation Timeline:

  • Infrastructure and preparatory work began in 2025.
  • The project is expected to be commissioned by early 2032.
  • Major construction will include dam building, tunnel boring, installation of turbines, grid connection, and environmental safeguards.

Strategic Significance:

  • Energy cooperation
  • The project will help Bhutan expand its hydropower exports to India.
  •  It will support clean energy access in India’s northeastern states and contribute to regional energy security.
  • Foreign policy and diplomacy
  •  The project demonstrates India's growing use of private sector partnerships in its neighborhood diplomacy.
  •  It reflects Bhutan’s continued importance in India’s energy and strategic planning.

Sustainability and environment:

  • As a run-of-river project, Dorjilung has relatively low environmental and social impacts compared to large reservoir-based dams.
  •  The project aligns with the sustainable energy goals of both Bhutan and India.

Recent Developments in 2025:

  • Pre-construction activities have begun, including site access roads, geological surveys, and environmental assessments.
  •  A joint task force between DGPC and Tata Power is overseeing early-stage work.
  •  World Bank supervision ensures adherence to international environmental and social standards.

Conclusion:

  • The Dorjilung Hydropower Project represents a landmark collaboration between Bhutan and India in the renewable energy sector.
  • With strong public-private support, international funding, and strategic significance, the project is poised to become a model for future cross-border clean energy projects in South Asia.

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