Tata Power plans to invest Rs 1,572 crore in its upcoming 1.1 GW hydroelectric power project in Bhutan, the company said in a regulatory filing to the stock exchange on Saturday.
The company officially announced that it has partnered with Druk Green Power Corporation, which is Bhutan’s largest power company, for the project.
Tata Power stated in the filing that the total cost of the Bhutan hydel project is estimated at Rs 13,000 crore. Tata Power will hold a 60% stake in the project while Druk Green Power will hold the remaining 40% stake. However, the company stated that 80% of the electricity 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,” Tata Power CEO & MD Praveer Sinha said.
According to Tata Power, the hydel project being developed on the Kurichhu River in Mongar, Bhutan, will have six units of 187.5 MW each. The project is expected to be commissioned in September 2031, the company stated.
The hydel project is also supported by the Government of Bhutan and the World Bank, the company stated.
Significantly, this is the third hydel Tata Power project in Bhutan. Dagachhu Hydro Power Project, Tata Power’s first hydropower project in Bhutan, was commissioned in 2015, in which the company holds a 26% stake.
Similarly, Tata Power holds a 40% in the Khorlochhu Hydropower Project, which is currently being implemented.
“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,” Tata Power CEO & MD Pravveer Sinha said.