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TATAPOWER
has signed commercial agreements to acquire a 40% stake in a special purpose vehicle (SPV) with Bhutan’s Druk Green Power Corporation for the 1,125 MW Dorjilung hydroelectric project. The total project cost is ₹13,100 crore, with Tata Power investing ₹1,572 crore in tranches for its equity. The project is expected to be commissioned by September 2031 and will be Bhutan’s second largest hydropower installation and its biggest public–private partnership in the sector.
Strategic impact and features
About 80% of the green electricity generated will be exported to India, enhancing energy ties and supporting regional clean energy targets.
The plant is a run-of-the-river hydropower facility with six units of 187.5 MW, designed for six-hour pondage for peak usage, and is located on the Kurichhu River in Mongar, Bhutan.
World Bank backing and Tata Power’s technical expertise reinforce cross-border cooperation and regional renewable ambitions between India and Bhutan.
Regional and sector implications
This deal strengthens Tata Power’s green portfolio, supports Bhutan’s export economy, and deepens energy security and clean energy flows for both nations. It also highlights the emergence of public–private partnerships (PPPs) as key drivers for future clean energy megaprojects in South Asia, enabling financial, technical, and employment benefits locally and regionally.
Source: The Hindu
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