Adani Power, Druk Green Power to set up 770 MW hydropower project in Bhutan; stock rises 2%

Adani Power and Bhutan’s state-owned Druk Green Power Corporation (DGPC) have signed a shareholders’ agreement (SHA) to set up the 770 MW Chamkharchhu-I Hydroelectric Project in Bhutan.

Cheering the news, Adani Power shares rose as much as 2.14% to hit a high of ₹205 on the BSE, taking its market capitalisation to ₹3.95 lakh crore.

The project will be developed in central Bhutan’s Zhemgang district on the Chamkarchhu river under the build, own, operate and transfer (BOOT) model. Adani Power and DGPC will hold a 49:51 equity stake in the project, according to an official release.

As per the release, construction is expected to commence in the first half of 2027, with commissioning targeted within six years of groundbreaking. The project will have a concession period of 30 years from the commercial operation date (COD).

The Chamkharchhu-I project is the second major hydropower collaboration between Adani Power and DGPC, following the agreement for the 570 MW Wangchhu Hydroelectric Project signed in September 2025.

Part of 5,000 MW Bhutan hydropower pact

The project is also part of a broader 5,000 MW hydropower development partnership between the Gautam Adani-led Adani Group and DGPC under a memorandum of understanding (MoU) signed in May 2025.

The peaking run-of-river project is expected to strengthen Bhutan’s clean energy generation capacity and meet the country’s peak winter electricity requirements. Surplus green power is expected to be exported to India during the summer months, according to the companies.

“We are delighted to strengthen our partnership with the Royal Government of Bhutan and DGPC through the Chamkharchhu Hydroelectric Project. 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 Anil Sardana, managing director, Adani Power.

“While the project is expected to help meet Bhutan’s peak winter electricity requirements, it will also enable the export of surplus green power to India during the summer months, creating long-term value for both nations,” he added.

“This partnership marks another significant milestone in Bhutan’s hydropower development journey and further strengthens the long-standing energy partnership between Bhutan and India. The 770 MW Chamkharchhu-I Hydropower Project will contribute to strengthening Bhutan’s energy security, particularly during the winter months, while creating opportunities to optimise and export surplus clean energy to India,” said Dasho Chhewang Rinzin, managing director, DGPC.

He said the collaboration also reflects the two sides’ commitment to developing Bhutan’s renewable energy resources through partnerships and efficient project delivery.

“We look forward to working closely with Adani Power to realise this important project and to advancing further opportunities under the broader hydropower development partnership,” he added.

Both organisations remain engaged in evaluating additional hydropower opportunities under the broader 5,000 MW development programme, the release noted.

Meanwhile, shares of Adani Ports opened marginally lower on Tuesday, trading 0.45% down at ₹1,767 on the BSE. The company’s market capitalisation stood at around ₹4.07 lakh crore at the time of reporting.