Adani Power Ltd. is making headlines after signing a significant shareholders agreement with Bhutan's state-owned Druk Green Power Corp. Ltd. (DGPC). The agreement, formalized on October 5, 2026, paves the way for the joint development of the 770 MW Chamkharchhu-I Hydroelectric Project in Bhutan.
Joint Venture Details and Project Scope
Under the terms of the agreement, Adani Power and DGPC will establish a new public company in Bhutan. Adani Power will hold a 49% stake in this project company, while DGPC will retain the majority 51%. Both partners will have the right to appoint three directors to the board and will contribute capital in proportion to their shareholdings.
The Chamkharchhu-I project is slated for development under a Build, Own, Operate and Transfer (BOOT) model, granting a 30-year concession from its commercial operation date. Construction is projected to commence in the first half of 2027, with commissioning targeted within six years of groundbreaking.
Strategic Location and Broader Partnership
Positioned as a peaking run-of-river project, Chamkharchhu-I will be located in the Zhemgang District of central Bhutan, harnessing the power of the Chamkarchhu River. This initiative is expected to significantly bolster Bhutan’s clean energy generation capabilities and foster greater regional energy cooperation.
This latest project marks the second major hydropower collaboration between Adani Power and DGPC, following an earlier agreement for the 570 MW Wangchhu Hydroelectric Project signed in September 2025. It also forms a crucial part of a larger 5,000 MW hydropower development partnership between the Adani Group and the Royal Government of Bhutan, established via a Memorandum of Understanding in May 2025.
Enhancing Energy Security and Sustainability
Anil Sardana, Managing Director of Adani Power, emphasized the project's importance, stating, "We are delighted to strengthen our partnership with the Royal Government of Bhutan and DGPC through the Chamkharchhu Hydroelectric Project. 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."
Sardana further noted that the project is anticipated to address Bhutan's peak winter electricity demands and facilitate the export of surplus green power to India during the summer months, reinforcing cross-border energy ties.