Tata Power will invest Rs 1,572 crore in its upcoming 1.1 GW hydropower project in Bhutan. In an exchange filing, the company said that it has partnered with Bhutan’s largest power company, Druk Green Power Corporation, for the project.
Furthermore, the Tata Group company said that the total cost of the project is estimated at Rs 13,000 crore. Tata Power will hold a 60 per cent stake in the company project while Druk Green Power will have a 40 per cent ownership stake. The company added that 80 per cent of the power generated will be supplied to India.
“As Bhutan’s largest hydro project under the PPP model, it is designed to fully support Bhutan’s domestic energy aspirations while also enabling the export of surplus clean power to India, strengthening regional energy security.”, said Praveer Sinha, CEO & Managing Director, Tata Power.
Project commissioning
Tata Power said that the project is being developed on the Kurichhu River in Mongar, Bhutan. It shall have six units of 187.5 MW each, designed with a six-hour pondage for peaking. The project is expected to be commissioned in September 2031.
The project is supported by the Government of Bhutan and the World Bank.
Tata Power’s other projects in Bhutan
This is the 3rd hydropower project of Tata Power in Bhutan. Dagachhu Hydro Power Project, Tata Power’s first hydropower project in Bhutan, was commissioned in 2015. The company holds a 26 per cent stake in the project.
Similarly, Tata Power holds a 40 per cent stake in the Khorlochhu Hydropower Project, which is currently under implementation.
“This partnership further strengthens our hydropower portfolio and positions the Indo–Bhutan energy corridor as a leading model for mutually beneficial, cross-border green energy cooperation”, Sinha said
