Dorjilung Hydropower Project Launched in Bhutan with Tata Power Partnership

Description

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The launch of the Dorjilung Hydropower Project in Bhutan marks a significant milestone in regional clean energy cooperation. This 1,125 MW project is a joint initiative between Bhutan’s Druk Green Power Corporation (DGPC) and India’s Tata Power Company Limited, signaling a strategic shift toward greater private sector involvement and shared infrastructure development between the two nations.

Project Overview And Location

The Dorjilung Hydropower Project is a run-of-the-river development situated on Bhutan’s Kurichhu River.

• The dam and headrace tunnel are located in Mongar district, with part of the reservoir stretching into Lhuentse district.

• The concrete-gravity dam will stand about 139.5 meters tall.

• Around 287 cubic meters of water per second will be channeled through a 15-kilometer tunnel to an underground powerhouse.

• This powerhouse will house six Francis turbines, expected to produce nearly 4.5 terawatt-hours of electricity annually.

Financial Details

Initial construction activities, including access roads and bridges, are already in progress. Two Bhutanese companies Chimi RD Construction and KD Builders have secured contracts worth Nu/?479 million for these works.

• The total project cost is projected at $1.7 billion (around Nu/Rs. 150 billion).

• The World Bank is funding the project, marking a shift from traditional government grants to an investment-driven approach.

India-Bhutan Partnership & Energy Goals

Tata Power’s involvement marks the first major private sector collaboration in Bhutan’s hydropower sector. The partnership envisions developing 5,000 MW of clean energy capacity in Bhutan, including the Dorjilung project and others such as:

• Gongri Reservoir

• Jeri Pumped Storage

• Chamkharchhu IV

In addition, Tata Power Renewable Energy Limited plans to develop 500 MW of solar projects linked to this initiative. This collaboration aligns with both nations’ renewable energy ambitions while supporting their growing energy needs.

Strategic And Economic Importance

This joint venture reduces Bhutan’s dependence on Indian government grants and credit lines, shifting toward business-to-business agreements that offer more equitable terms. For India, it strengthens energy security by providing stable, clean power from Bhutan.

The initiative also:

• Enhances bilateral ties between India and Bhutan

• Promotes regional stability through shared infrastructure

• Demonstrates economic diplomacy as a tool for energy cooperation

Regional Hydropower Context

Under the 2006 India-Bhutan bilateral agreement, four hydropower projects totaling 2,136 MW are already operational, supplying electricity to India.

The Dorjilung project stands out because of:

• Private sector equity participation

• World Bank-backed financing

This model is different from other Himalayan nations like Nepal, where geopolitical tensions often complicate foreign investment. Bhutan’s strategy blends domestic interests with strong ties to India, creating a balanced development framework.

Future Prospects

Work on the dam structure, boreholes, and tunnels will begin after the tendering phase. The project is expected to stimulate local economies in Mongar and Lhuentse districts while accelerating Bhutan’s renewable energy expansion.

The collaboration between DGPC and Tata Power represents not just a hydropower initiative, but a key step in South Asia’s clean energy transition.

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