Adani Power, India’s leading private power producer, and Druk Green Power Corporation Limited (DGPC), Bhutan’s state-owned power generation company, have signed a Shareholders Agreement (SHA) to implement the 770 MW Chamkharchhu-I Hydroelectric Project in Bhutan, a press release said.
The agreement was signed today, October 6, in Thimphu and Ahmedabad.
Bhutan’s Prime Minister, Lyonchen Dasho Tshering Tobgay, attended the signing ceremony in Thimphu. Also present were the Finance Minister, the Minister of Energy and Natural Resources, representatives of Druk Holding & Investments Limited (DHI) and Bhutan Power Corporation Limited (BPC), the DGPC Board and management, and representatives of Adani Power.
The peaking run-of-river project will be built on the Chamkharchhu River in Zhemgang District, central Bhutan. It will be implemented under the Build, Own, Operate and Transfer (BOOT) model. The equity partnership between Adani Power and DGPC will be 49:51, meaning DGPC will hold 51 percent. The concession period will be 30 years from the commercial operation date (COD).
Construction is expected to begin in the first half of 2027, with the project targeted for completion within six years.
This is the second major hydropower collaboration between the two partners. In September 2025, they signed an agreement for the 570 MW Wangchhu Hydroelectric Project. The Chamkharchhu-I project is also part of the 5,000 MW hydropower development Memorandum of Understanding (MoU) signed between the Adani Group and DGPC in May 2025. Both organizations are evaluating further hydropower opportunities under this programme.
Anil Sardana, Managing Director of Adani Power, said the company is delighted to strengthen its partnership with the Royal Government of Bhutan and DGPC. According to him, hydropower will play an important role in South Asia’s energy transition, and the project will contribute significantly to enhancing energy security, reducing carbon intensity and advancing shared sustainability goals.
He added that the project will help meet Bhutan’s peak winter electricity demand and create opportunities to export surplus green power to India in the summer, generating long-term value for both countries.
Dasho Chhewang Rinzin, Managing Director of DGPC, said the partnership is another significant milestone in Bhutan’s hydropower development journey and will further strengthen the long-standing energy partnership between Bhutan and India. In his view, it will strengthen Bhutan’s energy security, particularly in winter, while creating opportunities to export surplus clean energy to India.
