Adani Power and Druk Green Power Corporation (DGPC) have signed a shareholders agreement to develop the 770MW Chamkharchhu-I hydropower project in Bhutan, with construction expected to begin in the first half of 2027.
The peaking run-of-river scheme will be located on the Chamkarchhu River in Zhemgang District, central Bhutan. Adani Power will hold a 49% equity stake and Bhutan’s state-owned DGPC the remaining 51%.
The project will be developed under a build, own, operate and transfer model, with a 30-year concession from the date of commercial operation. Commissioning is targeted within six years of groundbreaking.
Signed on 6 October in the presence of Bhutan’s Prime Minister Tshering Tobgay, the agreement marks the partners’ second major hydropower collaboration, following their agreement for the 570MW Wangchhu project in September 2025. Both schemes form part of a broader memorandum of understanding signed between Adani Group and DGPC in May 2025 to develop 5,000MW of hydropower capacity.
Chamkharchhu-I is expected to help meet Bhutan’s peak winter electricity requirements while enabling surplus generation to be exported to India during the summer.
“We are delighted to strengthen our partnership with the Royal Government of Bhutan and DGPC through the Chamkharchhu Hydroelectric Project,” said Anil Sardana, managing director of Adani Power. “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.”
DGPC managing director Dasho Chhewang Rinzin said: “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.”
The two companies are continuing to evaluate additional hydropower opportunities under the wider 5000MW development programme.
