Bhutan Begins Construction of Dorjilung Hydropower Project
8 August 2025
Bhutan has officially initiated construction for the 1,125 MW Dorjilung Hydropower Project. The project, a joint venture between Bhutan’s Druk Green Power Corporation (DGPC) and India’s Tata Power Company Limited, marks a strategic shift from purely government-led initiatives to a partnership model involving private capital and multilateral finance, with the World Bank as the lead financier.
Construction of the foundations, such as access roads and bridges has commenced, with local contractors setting the stage for major works expected to begin in 2026. The project is located on the Kurichhu River in Mongar and Lhuentse districts. The total project cost stands at approximately $1.7billion (Nu/₹150billion), with Tata Power holding a 40% stake in the joint venture.
This partnership between Bhutan and India is part of a broader initiative to jointly develop 5,000MW of renewable energy capacity in Bhutan, which will include solar and other major hydropower schemes, to help both countries advance their climate and energy security goals. The launch of Dorjilung bolsters Bhutan's economic prospects and local development while emphasizing its commitment to a sustainable hydropower-led growth strategy.
Related links
Construction of Dorjilung Hydropower Project begins with Salang Tendrel for Access Roads and Bridges
