The World Bank Group has approved long-term financing for the 1,125 MW Dorjilung Hydropower Project (DHPL) in Bhutan, a joint venture between Druk Green Power Corporation (DGPC) and The Tata Power Company Limited.

DHPL, the project’s special purpose vehicle, is owned 60% by DGPC and 40% by Tata Power. The project will strengthen clean energy cooperation between India and Bhutan and enhance regional energy security.

Developed under a public-private partnership (PPP) model, the Dorjilung project will be Bhutan’s largest hydropower project and is expected to generate over 4,500 GWh of clean electricity annually. It will increase Bhutan’s installed power capacity by nearly 40%, with around 80% of the annual generation supplied to India. Tata Power Trading Company Limited, a wholly owned subsidiary of Tata Power, will manage power imports into India and onward distribution.

Financing Structure

The approved financing package includes:

$150 million grant and $150 million credit from the International Development Association (IDA)

$15 million IBRD enclave loan to DGPC (Government of Bhutan)

$200 million IBRD enclave loan and $300 million loan from the International Finance Corporation (IFC) to Dorjilung Hydropower Limited (DHPL)

The remaining funding requirements will be met through market borrowings.

The World Bank’s approval underscores confidence in the project’s technical and financial viability and provides long-term visibility for Tata Power and DGPC to advance execution in a disciplined and sustainable manner.

The Dorjilung Hydropower Project is expected to generate significant employment during construction and operations, stimulate local entrepreneurship, and support livelihoods in Bhutan’s Mongar and Lhuentse districts, while reinforcing cross-border clean energy collaboration in South Asia.