Adani Power and Bhutan’s state-owned Druk Green Power Corporation (DGPC) have signed an agreement to develop the 770 MW Chamkharchhu-I Hydroelectric Project, deepening energy cooperation between India and Bhutan and advancing a larger plan to develop 5,000 MW of hydropower capacity in the Himalayan kingdom.
The Shareholders Agreement (SHA) for the project was signed in Thimphu on October 6 in the presence of Bhutanese Prime Minister Tshering Tobgay, senior government officials and representatives of DGPC, Druk Holding & Investments, Bhutan Power Corporation and Adani Power.
The project will be developed through a 49:51 equity partnership, with Adani Power holding 49% and DGPC holding the remaining 51%.
Project to be completed within six years
The Chamkharchhu-I project will come up on the Chamkharchhu River in Bhutan’s Zhemgang district. It is planned as a peaking run-of-river hydropower project and will be implemented under the Build, Own, Operate and Transfer (BOOT) model.
Construction is expected to begin in the first half of 2027, with commissioning targeted within six years of groundbreaking. The project will operate under a 30-year concession period from the date of commercial operation.
The hydropower project is expected to strengthen Bhutan’s domestic electricity supply, particularly during the winter months when the country faces higher peak power requirements. Surplus clean electricity generated during the summer is expected to provide opportunities for exports to India.
Second major project between Adani Power and DGPC
Chamkharchhu-I marks the second major hydropower collaboration between Adani Power and DGPC.
The two sides had earlier signed an agreement for the 570 MW Wangchhu Hydroelectric Project in September 2025. Both projects fall under a much larger strategic partnership aimed at developing up to 5,000 MW of hydropower capacity in Bhutan.
The broader cooperation was formalised through a Memorandum of Understanding signed between the Adani Group and DGPC in May 2025. The two organisations are continuing to assess additional hydropower projects under the programme.
Anil Sardana, Managing Director of Adani Power, said the Chamkharchhu-I project would contribute to energy security and the broader clean-energy transition in South Asia.
He said the project could help address Bhutan’s winter electricity requirements while enabling the export of surplus green power to India during the summer, creating long-term benefits for both countries.
DGPC Managing Director Dasho Chhewang Rinzin said the project represents another milestone in Bhutan’s hydropower development and would strengthen the country’s energy security while creating opportunities to optimise and export surplus clean energy.
Boost to India-Bhutan energy partnership
The project comes amid growing efforts by India and Bhutan to deepen cooperation in renewable energy and cross-border electricity trade.
Bhutan has significant hydropower potential, while India remains a major market for electricity exports from the Himalayan nation. The expansion of generation capacity could therefore serve both Bhutan’s domestic energy requirements and its ambitions to increase clean-power exports.
For Adani Power, the partnership also expands its presence in Bhutan’s rapidly developing renewable energy sector. DGPC, meanwhile, is seeking to substantially expand Bhutan’s renewable generation capacity as the country targets 25,000 MW by 2040.
With Chamkharchhu-I, Wangchhu and other projects being evaluated under the 5,000 MW programme, the partnership could become a significant pillar of India-Bhutan energy cooperation in the coming years.
