India-Bhutan
Big India-Bhutan energy push! Adani Power signs deal for 770 MW hydropower project
Private power producer Adani Power and Bhutan’s state-owned generation utility Druk Green Power Corporation Ltd (DGPC) on Tuesday signed a Shareholders Agreement (SHA) for the development of the 770 MW Chamkharchhu-I Hydroelectric Project in Bhutan.
The signing ceremony was attended by Bhutan Prime Minister Lyonchen Dasho Tshering Tobgay, along with the Minister of Finance, the Minister of Energy and Natural Resources, and representatives from Druk Holding & Investments Limited (DHI), Bhutan Power Corporation Limited (BPC), the DGPC Board and management, and Adani Power.
The project marks the second major hydropower collaboration between Adani Power and DGPC, following the agreement for the 570 MW Wangchhu Hydroelectric Project signed in September 2025. It is also part of the broader 5,000 MW hydropower development Memorandum of Understanding (MoU) signed between the Adani Group and DGPC in May 2025.
The 770 MW peaking run-of-river project is located in Bhutan’s Zhemgang District on the Chamkarchhu River. It will be developed under the Build, Own, Operate and Transfer (BOOT) model through a 49:51 equity partnership between Adani Power and DGPC, with a concession period of 30 years from the commercial operation date.
Why the project is significant
According to Adani Power, the project will strengthen Bhutan’s clean energy generation capacity and deepen regional energy cooperation. Construction is expected to begin in the first half of 2027, with commissioning targeted within six years of the start of construction.
“We are delighted to strengthen our partnership with the Royal Government of Bhutan and DGPC through the Chamkharchhu Hydroelectric Project. Hydropower will play a pivotal role in accelerating South Asia’s energy transition, and this project will contribute significantly to enhancing energy security, reducing carbon intensity, and advancing shared sustainability goals,” Anil Sardana, Managing Director of Adani Power Ltd, said.
“While the project is expected to help meet Bhutan’s peak winter electricity requirements, it will also enable the export of surplus green power to India during the summer months, creating long-term value for both nations,” he added.
DGPC Managing Director Dasho Chhewang Rinzin said the partnership marked another significant milestone in Bhutan’s hydropower development and further strengthened the long-standing energy partnership between Bhutan and India.
“The 770 MW Chamkharchhu-I Hydropower Project will contribute to strengthening Bhutan’s energy security, particularly during the winter months, while creating opportunities to optimise and export surplus clean energy to India,” Rinzin said.
“Beyond the project itself, this collaboration reflects our shared commitment to developing Bhutan’s renewable energy resources through strong partnerships and responsible, efficient project delivery. We look forward to working closely with Adani Power to realise this important project and to advancing further opportunities under the broader hydropower development partnership,” he added.
Adani Power and DGPC are also evaluating additional hydropower opportunities under the broader 5,000 MW development programme.
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