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India–Bhutan Collaboration Advances Dorjilung Mega Hydropower Project

Prelims: (International Relations, Geography)
Mains: (GS 2 – International Relations; GS 3 – Infrastructure, Security)

Why in the News?

Tata Power Company Ltd has signed commercial agreements with Druk Green Power Corporation Ltd (DGPC) for jointly developing the 1,125 MW Dorjilung Hydroelectric Power Project in eastern Bhutan. This agreement marks one of the largest India–Bhutan hydropower collaborations and strengthens regional clean-energy cooperation.

About Dorjilung Hydroelectric Power Project

Location & Type

  • A planned 1,125 MW run-of-river hydropower project.
  • Situated in Lhuentse and Mongar districts of eastern Bhutan.
  • Located on the Kurichhu River, a tributary of the Drangmechhu, which eventually flows into India.

Technical Features

  • A 139.5 m high concrete-gravity dam.
  • Designed to channel ~287 m³/s of water.
  • Water is diverted through a 15 km headrace tunnel to an underground powerhouse.
  • Powerhouse will host six Francis turbines.
  • Annual generation capacity: ~4.5 TWh.

Project Scale & Cost

  • Total cost estimated at ₹13,100 crore.
  • Will be Bhutan’s second-largest hydropower project.
  • Also the largest Public–Private Partnership (PPP) hydropower project ever undertaken in Bhutan.

Institutional Framework

  • Financed by the World Bank.
  • November 2024: DGPC signed an MoU with Tata Power for joint development.
  • Implementation via a Special Purpose Vehicle (SPV):
    • DGPC – 60% equity
    • Tata Power – 40% equity

Timeline

  • Expected commissioning: Early 2032.

Significance of the Project

Strengthening India–Bhutan Energy Partnership

  • Enhances long-standing hydropower cooperation between the two countries.
  • Supports regional clean energy stability and cross-border electricity trade.

Boost to Bhutan’s Economy

  • Hydropower is Bhutan’s largest revenue source; Dorjilung will significantly expand export capacity.
  • Creates jobs and stimulates infrastructure growth in eastern Bhutan.

Clean Energy Transition

  • Supports low-carbon power generation in the Himalayan region.
  • Contributes to India’s renewable energy commitments by enabling future power imports.

Strategic Value

  • Reinforces India’s role as Bhutan’s key development partner.
  • Counters external geopolitical influence in Bhutan’s energy sector.

Challenges

  • High construction complexity in rugged Himalayan terrain.
  • Climate-related risks such as glacial melt and sediment load.
  • Large capital requirement and need for timely funding disbursement.
  • Ensuring environmental safeguards and community engagement.

Way Forward

  • Strengthen India–Bhutan institutional coordination for smooth project execution.
  • Ensure transparent environmental and social assessments.
  • Improve regional transmission infrastructure for future power export.
  • Incorporate climate-resilient engineering practices.

FAQs

1. Where is the Dorjilung Hydropower Project located?

In the Lhuentse and Mongar districts of eastern Bhutan on the Kurichhu River.

2. Who is developing the project?

DGPC and Tata Power through an SPV, with 60:40 equity sharing.

3. What is the project capacity?

1,125 MW, generating approximately 4.5 TWh annually.

4. When will the project be commissioned?

By early 2032.

5. Why is the project significant?

It enhances India–Bhutan energy cooperation, expands Bhutan’s revenue base, and boosts clean energy capacity.

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