Tata Power and Bhutan's Druk Green Power Corporation Ltd (DGPC) have announced a major partnership to develop a substantial hydropower project in eastern Bhutan. The Khorlochhu Hydropower Project, estimated to cost Rs 6,900 crore, will generate 600 megawatts (MW) of electricity from the Kholongchhu River.

The project highlights Tata Power's dedication to its "Sustainable is Attainable" initiative, which aims for carbon neutrality and providing clean energy alternatives to India. The Memorandum of Understanding (MoU) for the project has already been signed between Tata Power and DGPC, with the Definitive Agreement expected to be executed shortly.

According to a statement from Tata Power, the Khorlochhu Hydropower Project will address Bhutan's growing electricity needs and support India's transition to renewable energy sources. Tata Power will hold a 40 percent equity stake in Khorlochhu Hydro Power Ltd, a Public-Private Partnership company established for this project.

The total estimated cost, including financing charges, is approximately Rs 6,900 crore. Construction is expected to take five years, with all necessary statutory approvals already secured, allowing work to commence promptly.

Dr. Praveer Sinha, CEO & MD of Tata Power, described the project as a landmark alliance, stating, “This is a landmark alliance for Tata Power and Druk Green Power Corporation. The development of the 600 MW Khorlochhu Hydropower Project in Bhutan will provide energy security to the region. This project marks a significant step towards building a sustainable energy landscape, underscoring Tata Power’s commitment to a greener future.”

Dasho Chhewang Rinzin, MD of DGPC, emphasised the project’s importance for Bhutan's energy security and economic growth, aligning with the country’s goal of achieving High-Income Gross National Happiness (GNH) Economy status by 2034.

The Khorlochhu Hydropower Project is set to play a crucial role in boosting regional energy cooperation and meeting the energy and economic objectives of both Bhutan and India.

Image source: Rediff.com