Adani Power Ltd and Bhutan’s state-owned Druk Green Power Corp. Ltd. (DGPC) have signed a shareholders agreement to develop the 770 MW Chamkharchhu-I Hydropower Project in Bhutan, deepening the energy partnership between India and the Himalayan kingdom.
The agreement covers the development of the peaking run-of-river project in Zhemgang District of central Bhutan on the Chamkharchhu River.
The signing ceremony was attended by Bhutan Prime Minister Lyonchen Dasho Tshering Tobgay, along with the Minister of Finance, the Minister of Energy and Natural Resources, and representatives from Druk Holding & Investments Limited, Bhutan Power Corporation Limited, the DGPC board and management, and Adani Power.
Second major hydropower partnership
The Chamkharchhu-I project is the second major hydropower collaboration between Adani Power and DGPC.
The two companies had signed an agreement for the 570 MW Wangchhu Hydroelectric Project in September 2025. The latest project also forms part of the broader 5,000 MW hydropower development memorandum of understanding signed between the Adani Group and DGPC in May 2025.
Adani Power and DGPC will develop Chamkharchhu-I through a 49:51 equity partnership, respectively.
The project will be implemented under the Build, Own, Operate and Transfer (BOOT) model, with a concession period of 30 years from the commercial operation date.
Construction targeted from 2027
Construction of the project is expected to commence in the first half of 2027, with commissioning targeted six years after groundbreaking.
The project is designed to strengthen Bhutan’s clean energy generation capacity and improve the availability of electricity during the country’s peak winter demand period.
Surplus green power generated during the summer months is expected to be exported to India, creating an avenue for greater cross-border electricity cooperation between the two countries.
Focus on regional clean energy
Company representatives said the project would contribute to energy security and the broader clean energy transition in South Asia.
“Hydropower will play a pivotal role in accelerating South Asia’s energy transition, and this project will contribute significantly to enhancing energy security, reducing carbon intensity, and advancing shared sustainability goals,” said Adani Power Ltd Managing Director Anil Sardana.
He added that the project is expected to help meet Bhutan’s peak winter electricity requirements while enabling the export of surplus green power to India during summer.
Druk Green Power Corp. Ltd Managing Director Dasho Chhewang Rinzin said the project would strengthen Bhutan’s energy security and create opportunities to optimise and export surplus clean energy to India.
The two organisations are also evaluating additional hydropower opportunities under the broader 5,000 MW development programme.
A larger India-Bhutan energy corridor
The latest agreement expands the scope of cooperation between Adani Power and Bhutan’s state-owned power utility at a time when hydropower is gaining importance in the region’s clean energy transition.
For Bhutan, the 770 MW project is expected to add generation capacity while improving seasonal energy security. For India, the project could contribute to greater access to renewable electricity through cross-border power flows, particularly during periods of surplus generation in Bhutan.
The Chamkharchhu-I project therefore adds another major asset to the emerging India-Bhutan hydropower partnership, with the two sides continuing to explore opportunities under their wider 5,000 MW development framework.