Tata Power, Druk Green Power to develop 600-MW hydro project in Bhutan

Its estimated cost is $828m.

India’s Tata Power has entered a partnership with Druk Green Power Corporation Ltd to develop the 600-megawatt (MW) Khorlochhu Hydropower Project in Trashiyangtse Dzongkhag in Eastern Bhutan.

In a statement, Tata Power said the project cost is around $828m (INR6900 crore) with a construction timeline of five years. The partnership involves a 40% equity investment by the Indian power firm in the public private partnership company Khorlochhu Hydro Power Limited.

Tata Power said this is an extension of the two companies’ existing partnership in the 126 MW Dagachhu Hydropower Plant also in Bhutan.

Once operational, the Khorlochhu Hydropower Project will help Bhutan in its increasing electricity demand during the winter. Power will also be exported to India to support higher demand during the summer.

Meanwhile, Tata Power Trading Corporation Ltd will also sign long-term power purchase agreements with Khorlochhu Hydro Power Ltd for export of the summer surplus power to India, and with Bhutan Power Corporation Ltd, a subsidiary of Druk Holding & Investments Ltd, for the domestic sale of power in the winter months.

Tata Power earlier announced it is allocating $2.44b (INR20,000 crore) for its capital expenditure in fiscal year 2025 to accelerate its clean energy portfolio and boost its transmission and distribution infrastructure.

$1=INR83.96

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