Khorlochhu Hydro Power Limited (KHPL) has finalised financing agreements with India’s Power Finance Corporation Ltd. (PFC) worth INR/Nu. 48.29 billion (approx. US$580 million) in term loans, along with a standby credit facility of INR/Nu. 9.50 billion (US$114 million), for the 600MW Khorlochhu hydropower project in Trashiyangtse, Bhutan.
This is PFC’s first cross-border financing in Bhutan, making it the sole lender for the project. KHPL is a joint venture between Druk Green Power Corporation Limited (DGPC, 60%) and Tata Power Company Limited (40%).
The project, estimated to cost INR/Nu. 69.00 billion (US$830 million), is targeted for commissioning in 2029–2030 and will generate about 2,524 million units annually. Construction began in January 2025 with major civil works awarded. Power evacuation will involve a 145km, 400 kV double-circuit transmission line to the Goling pooling station, being developed by Bhutan Power Corporation.
At the signing, Dasho Karma Tshering, Secretary at Bhutan’s Ministry of Energy & Natural Resources, called the agreement “a historic moment in Bhutan’s hydropower journey, marking not only the financial closure of a mega project, but also the dawn of a new era of project-based financing.” He added that the model would help Bhutan achieve its renewable energy target of 25GW by 2040.
PFC Chairperson and Managing Director Parminder Chopra said: “This hydropower project holds strategic significance for the region, driving climate-aligned energy transitions and deepening cross-border energy cooperation. Bhutan’s monsoon-driven hydropower complements India’s seasonal demand peaks, providing stable, round-the-clock clean energy.”
Tata Power CEO & MD Dr. Praveer Sinha noted that the agreement reflects strong government support in both countries and strengthens regional energy security.
DGPC Managing Director Dasho Chhewang Rinzin added that the deal showcases the long-standing Bhutan–India partnership and confirmed progress on the next joint venture, the 1,125MW Dorjilung project, with major contracts planned for award in early 2026.
Beyond Khorlochhu, DGPC and Tata Power are jointly developing over 4,500MW of hydropower and 500MW of solar generation in Bhutan, in one of the largest clean energy collaborations in Asia.
