Bhutan-India Dorjilung Hydropower Project
The recent launch of the Dorjilung Hydropower Project in Bhutan marks milestone in regional clean energy collaboration. This 1125 MW project is a joint venture between Bhutan’s Druk Green Power Corporation (DGPC) and India’s Tata Power Company Limited. It represents a strategic shift towards private sector participation and shared infrastructure development between the two nations.
Project Overview and Location
- The Dorjilung Hydropower Project is a run-of-the-river scheme located on Bhutan’s Kurichhu River.
- The dam and headrace tunnel are in Mongar district, with part of the reservoir extending into Lhuentse district.
- The concrete-gravity dam stands approximately 139.5 metres tall.
- Water flow of nearly 287 cubic metres per second will pass through a 15-kilometre tunnel to an underground powerhouse.
- This powerhouse will house six Francis turbines designed to generate about 4.5 terawatt-hours annually.
Financial Details
Construction has begun with foundational infrastructure such as access roads and bridges. Two Bhutanese contractors, Chimi RD Construction and KD Builders, are responsible for these works with contracts valued at Nu/₹479 million combined. The total project cost is estimated at $1.7 billion (around Nu/₹150 billion). The World Bank is financing the project, marking an important shift from traditional government grants towards investment-based funding.
India-Bhutan Partnership and Energy Goals
Tata Power’s involvement signals a new era of private sector collaboration in Bhutan’s hydropower sector. The partnership aims to develop at least 5000 MW of clean energy capacity in Bhutan, including the Dorjilung project and others like Gongri Reservoir, Jeri Pumped Storage, and Chamkharchhu IV. Tata Power Renewable Energy Limited will also develop 500 MW of solar power projects linked to this initiative. This collaboration supports both countries’ growing energy demands and renewable energy targets.
Strategic and Economic Significance
This joint venture is a move towards reducing Bhutan’s dependence on government grants and credit lines from India. It reflects Bhutan’s desire for business-to-business deals that offer greater parity and autonomy. The partnership also enhances India’s energy security by increasing access to reliable, clean power from the Himalayas. It strengthens bilateral ties and regional stability through shared infrastructure and economic diplomacy.
Context of Regional Hydropower Cooperation
Under the 2006 India-Bhutan bilateral agreement, four hydroelectric projects totalling 2136 MW are already operational, supplying electricity to India. The Dorjilung project is unique due to private sector equity and World Bank financing. This model contrasts with other Himalayan neighbours like Nepal, where geopolitical concerns complicate foreign investments. Bhutan’s approach balances domestic political interests with maintaining strong relations with India.
Future Prospects
Civil works for the dam, boreholes, and tunnels will soon commence following tendering processes. The project is expected to boost local economies in Mongar and Lhuentse districts. The partnership between DGPC and Tata Power is set to accelerate Bhutan’s renewable energy development and contribute to the region’s clean energy transition.
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