Adani Power said on Saturday that it has inked a pact with Bhutan's state-owned utility Druk Green Power to set up a 570-MW hydel project entailing an investment of Rs 6,000 crore, in the Himalayan kingdom.
As per the agreement, Adani Power and Druk Green Power Corp Ltd (DGPC) will initiate the peaking run-of-river Wangchhu hydroelectric project on a BOOT (build, own, operate, transfer) model.
A power purchase agreement and a concession agreement were signed in this regard in the presence of Bhutan Prime Minister Dasho Tshering Tobgay and Gautam Adani, Chairman, Adani Group, a company statement said.
The Wangchhu project will see an investment of about Rs 6,000 crore in setting up the power plant and related infrastructure. With 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 ground breaking.
"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 SB Khyalia, CEO, Adani Power.
The Wangchhu project is the first hydroelectric project to be taken up under a memorandum of understanding (MoU) signed in May 2025 between Adani Group and DGPC for jointly developing 5,000 MW of hydropower in Bhutan.
Adani Group and DGPC are engaged in further discussions for future projects under this strategic partnership. Adani Power is the largest private thermal power producer in India. DGPC is the sole generation utility of Bhutan with a current generation portfolio of a little over 2,500 MW and growing fast with Bhutan’s aspirations to achieve 25,000 MW in generation capacity by 2040.
Druk Holding & Investments, the commercial arm of the Royal Government of Bhutan, is DGPC’s shareholder. Established in 2008 to take a lead role in developing Bhutan’s hydropower resources, it has recently diversified beyond hydropower into tapping solar resources also.
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