BHUTAN; INDIA —Indian private power utility Adani Power and Bhutan’s state-owned generator Druk Green Power Corporation (DGPC) have finalized a shareholders agreement (SHA) to jointly develop the 770 megawatt Chamkharchhu-I hydroelectric project in central Bhutan’s Zhemgang district.
The peaking run-of-river project will be executed through a Bhutan-incorporated public joint venture entity, held 51 percent by Druk Green Power and 49 percent by Adani Power. Each party will appoint three directors to the board, sharing equal managerial oversight. Initial equity equity capital will comprise 10 million shares valued at 100 Bhutanese Ngultrum each, with further funding provided proportionately. Construction is slated to start in early 2027 under a Build, Own, Operate, and Transfer framework, featuring a 30-year operational concession from the commercial operation date and an estimated six-year build timeline.
This joint initiative addresses regional seasonal power imbalances by supplying clean generation locally to meet Bhutan’s winter demand peaks while exporting excess output to India during wet summer months. The arrangement builds on a September 2025 agreement for the 570 megawatt Wangchhu project, aligning with a May 2025 framework agreement to evaluate up to 5,000 megawatts of hydro capacity across Bhutan.
The cross-border venture reinforces South Asia’s broader transition toward integrated grid networks and low-carbon energy infrastructure. Increased hydel capacity offers grid stabilization benefits for India's power mix, while providing Bhutan with consistent export revenues and long-term asset transfers upon concession expiry.
For institutional investors and energy stakeholders, the deal demonstrates growing corporate appetite for cross-border public-private partnerships under concession models. It also highlights the expanding role of private capital in public energy infrastructure across emerging South Asian economies.
Adani Power is India's largest private thermal power producer, operating over 18 gigawatts of capacity across multiple generation assets. Druk Green Power Corporation (DGPC) is Bhutan's state generation utility, managing over 3,500 megawatts of renewable assets under state holding entity Druk Holding & Investments.
