New Delhi / Ahmedabad, September 06, 2025: Adani Power, India’s largest private
power producer, and Druk Green Power Corp. Ltd. (DGPC), Bhutan’s state-owned
generation utility, today signed the Shareholders Agreement (SHA) for setting up a
570 MW Wangchhu hydroelectric project in the Himalayan Kingdom of Bhutan. An in-
principle understanding on the Power Purchase Agreement (PPA) was also initialed.
Most importantly, the developers also signed the Concession Agreement (CA) for the
project with the Royal Government of Bhutan.
These Agreements, signed in the presence of the Hon’ble Prime Minister of Bhutan,
Dasho Tshering Tobgay and Mr. Gautam Adani, Chairman, Adani Group, pave the way
for Adani Power and DGPC to initiate the implementation of the peaking run-of-river
Wangchhu hydroelectric project on a BOOT (Build, Own, Operate, Transfer) model.
The Wangchhu project will see an investment of about INR 60 billion in setting up the
renewable energy power plant and related infrastructures. With the preparation of the
detailed project report already completed, construction work is expected to begin by
the first half of 2026, and the completion is targeted within five years of
groundbreaking.
“Bhutan is a role model for the world in sustainable development, and we are very
excited to play a leading role in the development of the country’s natural resources
through this renewable energy project. The Wangchhu hydroelectric project will
critically meet Bhutan’s peak winter demand, when hydro power generation is low.
During the summer months, it would export power to India,” said Mr. SB Khyalia, CEO,
Adani Power.
“Bhutan and India have, since the 1960s, worked closely together to harness the huge
hydropower potential that Bhutan is endowed with. This cooperation in hydropower
has immensely benefited both countries and is considered the cornerstone of the
exemplary and friendly relations that the two countries enjoy. As Bhutan endeavors to
become a High Income GNH (Gross National Happiness) Country within the next
decade, access to reliable and affordable electricity from its renewable energy
resources such as hydropower and solar will be critical to enable other investments to
drive its economic growth. Bhutan therefore plans to add another 15,000 MW in
hydropower and 5,000 MW in solar generation capacity by 2040. DGPC is therefore
happy to be partnering with the Adani Group for establishing the 570 MW Wangchhu
hydroelectric project. Considering their technical & financial strength and the
immense experience and expertise that the Adani Group brings to the table, the
project implementation is expected to be fast-tracked and set a benchmark for other
such projects. The project, on completion, will not only help ensure Bhutan’s energy
security but also help further strengthen grid connectivity between Bhutan and India,”
said Dasho Chhewang Rinzin, MD, DGPC.
The Wangchhu is the first hydroelectric project to be taken up under an MoU that was
signed in May 2025 between the Adani Group and DGPC for jointly developing 5,000
MW of hydropower in Bhutan. Adani Group and DGPC are eng
