Indian company Adani Power and Bhutan's state-owned utility Druk Green Power Corporation (DGPC) has signed an agreement to set up a 570 MW hydro project entailing worth ₹6,000 crore, in the Himalayan Kingdom, as per an ANI report.
The deal, signed in Delhi, will see Adani Power and Druk Green build the run-of-river Wangchhu hydroelectric project on a BOOT (Build, Own, Operate, Transfer) model.
A power purchase agreement (PPA) and a concession agreement were also signed in the presence of Prime Minister of Bhutan, Dasho Tshering Tobgay and Gautam Adani, Chairman, Adani Group, the report added.
Bhutan hydro project: What we know…
- The Wangchhu project will see an investment of about ₹6,000 crore in setting up the power plant and related infrastructures.
- With the detailed project report already completed, construction work is expected to begin by the first half of 2026, and the completion is targeted within five years of groundbreaking.
- “The Wangchhu hydroelectric project will critically meet Bhutan’s peak winter demand, when hydro power generation is low. During the summer months, it would export power to India,” said SB Khyalia, CEO, Adani Power.
- The Wangchhu is the first hydroelectric project to be taken up under an MoU signed in May 2025 between Adani Group and DGPC for jointly developing 5,000 MW of hydropower in Bhutan.
- Adani Group and DGPC are engaged in further discussions for future projects under this strategic partnership.
Adani Power is the largest private thermal power producer in India.
DGPC is the sole generation utility of Bhutan with a current generation portfolio of a little over 2,500 MW and growing fast with Bhutan’s aspirations to achieve 25,000 MW in generation capacity by 2040.
Druk Holding & Investments, the commercial arm of the Royal Government of Bhutan, is DGPC’s shareholder.
Established in 2008 to take a lead role in developing Bhutan’s hydropower resources, it has recently diversified beyond hydropower into tapping solar resources also.
(With the inputs from PTI)
