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Powering the Future of Clean Energy
Druk Green Power Corporation (DGPC) and The Tata Power Company Limited (TATA Power) had entered into a strategic partnership to construct the 600 MW Khorlochhu Hydro Power Project. DGPC holds a 60 percent equity stake while TATA Power invests 40 percent. The estimated project cost, including financing charges, is approximately Nu. 70 billion, with a construction timeline of five years.
TATA Power is one of the India’s largest integrated power companies. With support from the governments of Bhutan and India, all statutory approvals were accorded for the construction of project. This collaboration builds on the existing partnership between the DGPC and TATA Power in the 126 MW Dagachhu Hydropower Project in Bhutan.
Project Overview & Location
The project is estimated to cost approximately Nu. 70 billion, with construction scheduled between 2025 and 2031. The engineering layout features a dam site located at Buyang and an underground powerhouse situated at Doksum in Trashiyangtse.
Dasho Chhewang Rinzin said that this strategic partnership with TATA Power to develop the Khorlochhu Hydro Power Limited was a significant step towards Bhutan’s energy security and economic development as the country seeks to become a high-income GNH economy by 2034.
The Khorlochhu Hydro Power Limited had entered into long-term Power Purchase Agreements with Tata Power Trading Corporation Limited, a wholly owned subsidiary of TATA Power, for export of summer surplus power to the Indian market and with Bhutan Power Corporation Limited for domestic power sales during the winter.
The Chief Executive Officer (CEO) and Managing Director of TATA Power, Dr. Praveer Sinha, and the Managing Director of DGPC, Dasho Chhewang Rinzin, finalized the Definitive Agreement for the project in Mumbai, India on 29 July 2024 and subsequently entered into a strategic joint venture partnership in October 2024, marking Bhutan’s first major foreign private partnership in the hydropower sector.
Dr. Praveer Sinha said that this was a landmark alliance for TATA Power and DGPC and the development of the Khorlochhu Hydro Power Project in Bhutan would provide energy security to the region. “This project marks a significant step towards building a sustainable energy landscape underscoring TATA Power’s commitment to a greener future,” he said.
Strategic Partnership & Vision
As a vital component of Bhutan's clean energy expansion, KHPL combines DGPC's domestic hydropower expertise with Tata Power's operational excellence to accelerate regional economic growth and technological modernization.
TATA Power also has a successful Joint Venture with Power Grid Corporation of India Limited for the 1,200 km long transmission line to bring electricity from Bhutan to Delhi. Once operational, the Khorlochhu Hydro Power Project will meet Bhutan’s growing winter electricity needs and support India’s increasing power demands during the summer.
This strategic partnership is a step towards strengthening the clean energy collaboration between India and Bhutan. This marquee investment underscores TATA Power’s commitment to its “sustainable is attainable” initiative, striving towards carbon neutrality and providing alternative clean energy to India.
The project aligns with Bhutan’s ambitious goal of achieving 20,000 MW of hydropower generation capacity by 2040.
Powering Sustainable Growth in Eastern Bhutan
KHPL is committed to executing the 600 MW project while maintaining the highest standards of environmental stewardship, safety, and community welfare.
Through modern engineering, local infrastructure development, and clean energy generation, we aim to deliver long-term socio-economic value for Bhutan and beyond.