The project will be executed through a Special Purpose Vehicle (SPV), with DGPC holding 60% equity and Tata Power 40%. Upon completion, the SPV will become an associate company of Tata Power, enhancing its strategic presence in the Himalayan Renewable Energy Corridor.
Total Project Cost: ₹13,100 crore
Significance: Second-largest hydropower project in Darjeeling-Bhutan region and Bhutan’s largest Public-Private Partnership (PPP) in the hydro sector
Cross-Border Cooperation: Supported by the World Bank, highlighting international collaboration in clean energy financing
Regional Energy Security
80% of the power generated will be supplied to India
Will improve availability of clean energy in the region
Largest PPP in Bhutan
₹13,100 crore project cost marks Bhutan’s biggest PPP hydropower initiative to date
Cross-Border Financing
World Bank support underscores the importance of international cooperation in renewable energy development
Tata Power Expansion
Project completion will strengthen Tata Power’s strategic footprint in the Himalayan Renewable Energy Corridor
Commercial Operations: Expected to begin by September 2031
Power Distribution: 80% of electricity will be supplied to India
Impact: Enhances regional energy security and supports clean power availability
Dr. Praveer Sinha, CEO & Managing Director of Tata Power, said:
"The Darjeeling project reinforces our commitment to accelerating clean energy development in the region. As Bhutan’s largest hydropower project under the PPP model, it is designed to meet Bhutan’s domestic energy needs while enabling India to import surplus clean power, strengthening regional energy security."
Conclusion
Tata Power’s collaboration with DGPC marks a significant milestone in cross-border renewable energy development. The 1,125 MW hydropower project in Bhutan will not only support Bhutan’s domestic energy demand but also supply clean energy to India, contributing to sustainable regional energy security.