Adani Power Ltd. saw its shares climb on Tuesday, October 6, 2026, following the announcement of a significant agreement with Bhutan's state-owned Druk Green Power Corp. Ltd. (DGPC). The pact, signed on October 5, 2026, establishes a joint venture to develop the 770 MW Chamkharchhu-I Hydroelectric Project in Bhutan.
Joint Venture Details and Project Scope
Under the newly signed shareholders agreement, Adani Power and DGPC will jointly incorporate a public company in Bhutan. Adani Power will hold a 49% stake in this project company, with DGPC retaining the majority 51% shareholding. Both entities will have the right to appoint three directors each to the board, and capital contributions will be made proportionally to their agreed shareholding.
The Chamkharchhu-I project is slated for development under a Build, Own, Operate and Transfer (BOOT) model. It will operate with a 30-year concession period, commencing from the date of its commercial operation. Located in central Bhutan's Zhemgang District on the Chamkarchhu River, construction is anticipated to begin in the first half of 2027, with commissioning targeted within six years of groundbreaking.
Strategic Regional Energy Partnership
This initiative marks the second major hydropower collaboration between Adani Power and DGPC. It follows the agreement for the 570 MW Wangchhu Hydroelectric Project, signed in September 2025. Both projects are part of a broader 5,000 MW hydropower development partnership between the Adani Group and DGPC, formalized through a memorandum of understanding in May 2025.
Leadership Comments and Future Outlook
Anil Sardana, Managing Director of Adani Power, expressed enthusiasm for the strengthened partnership with the Royal Government of Bhutan and DGPC. He highlighted hydropower's pivotal role in accelerating South Asia's energy transition, emphasizing the project's expected contribution to enhanced energy security, reduced carbon intensity, and shared sustainability goals.
Sardana also noted the dual benefits of the project: meeting Bhutan's peak winter electricity demand and enabling the export of surplus green power to India during summer months, creating long-term value for both nations. Both organizations are actively evaluating additional hydropower opportunities under their expansive 5,000 MW development program.