Adani Power and Bhutan's DGPC Partner for 770 MW Chamkharchhu-I Hydro Project
Adani Power Limited and Bhutan's state-run Druk Green Power Corporation have signed a Shareholders Agreement to develop the 770 MW Chamkharchhu-I Hydroelectric Project. The peaking run-of-river project in Zhemgang District will operate under a 30-year BOOT framework with a 51:49 equity ratio favouring DGPC.
What happened
On 6 October 2026, Indian private utility major Adani Power Limited and Bhutan's state-owned Druk Green Power Corporation Limited (DGPC) signed a Shareholders Agreement (SHA) in Thimphu, Bhutan, to execute the 770 MW Chamkharchhu-I Hydroelectric Project. The formal signing took place in the presence of Bhutanese Prime Minister Lyonchhen Dasho Tshering Tobgay, the Minister of Finance, the Minister of Energy and Natural Resources, alongside senior representatives from Druk Holding & Investments Limited (DHI), Bhutan Power Corporation Limited (BPC), and Adani Power.
The power station will be constructed as a peaking run-of-river facility on the Chamkarchhu (Chamkharchhu) River in Zhemgang District, located in central Bhutan. Under the ownership terms, DGPC will hold a majority stake of 51%, while Adani Power will hold the remaining 49%. The venture will be structured as a Bhutan-incorporated public company with an initial equity base of 10 million shares valued at BTN 100 each. DGPC will subscribe to 5.1 million shares worth BTN 510 million, while Adani Power will subscribe to 4.9 million shares worth BTN 490 million, with both organisations nominating three directors each to the board.
The project will follow the Build, Own, Operate and Transfer (BOOT) delivery model with a concession term spanning 30 years from its Commercial Operation Date (COD). Construction activity is planned to start in the first half of 2027, with commissioning scheduled within six years of groundbreaking. Operationally, the facility will support Bhutan's domestic energy demand during winter peak hours and export surplus clean electricity to the Indian market during the high-flow summer months.
This partnership builds on earlier bilateral clean energy milestones. In May 2025, Adani Group and DGPC signed a foundational Memorandum of Understanding to jointly develop up to 5,000 MW of hydropower in Bhutan. Subsequently, in September 2025, both parties signed their first major joint project pact to develop the 570 MW Wangchhu Hydroelectric Project.
Important dates
| Hydropower MoU (up to 5,000 MW) signed by Adani Group and DGPC | May 2025 |
|---|---|
| Agreement signed for 570 MW Wangchhu Hydroelectric Project | September 2025 |
| Shareholders Agreement signed for Chamkharchhu-I Project | 6 October 2026 |
| Targeted start of project construction | First half of 2027 |
📌 Static GK links
- Druk Green Power Corporation (DGPC) is Bhutan's state utility operating under Druk Holding & Investments (DHI).
- Managing Director of DGPC: Dasho Chhewang Rinzin; Managing Director of Adani Power: Anil Sardana.
- Capital of Bhutan: Thimphu; Official Currency: Bhutanese Ngultrum (BTN).
- Under the Build, Own, Operate and Transfer (BOOT) framework, private/joint entities build and run an infrastructure facility for a specific concession duration before transferring ownership to the host government or utility.
What candidates should do
- Note the equity division (51:49) and generation capacity (770 MW) as these specific metrics are frequently tested in banking and SSC examinations.
- Revise the sequence of cross-border energy agreements between Indian firms and neighbouring countries, especially Bhutan and Nepal.
PrepZen analysis
From an examination perspective, cross-border energy cooperation between India and Bhutan is an essential topic under International Relations (UPSC GS-II), Infrastructure/Energy Security (GS-III), and General Awareness for Banking and SSC exams. Questions commonly test exact capacities, river locations, district names, and equity configurations.
Strategically, this project highlights the shift toward public-private cross-border investments in South Asia. While earlier Indo-Bhutan hydropower projects were largely executed through inter-governmental (G2G) budgetary grants and loans, the Chamkharchhu-I framework uses a corporate joint venture under the BOOT model. This helps Bhutan tap private Indian capital while retaining sovereign majority control via DGPC, addressing domestic winter shortages and facilitating seasonal export to India.
Practice questions
Q1. What is the generation capacity of the Chamkharchhu-I Hydroelectric Project being developed by Adani Power and Bhutan's DGPC?
Q2. In which district of Bhutan is the 770 MW Chamkharchhu-I Hydroelectric Project located?
Q3. What is the equity ratio between Druk Green Power Corporation (DGPC) and Adani Power for the Chamkharchhu-I project company?
Chamkharchhu-I hydroelectric facility holds a generation capacity of 770 MW.
Equity split stands at 51% for DGPC and 49% for Adani.
🎯 Key Point: Adani Power and DGPC partner on 770 MW Chamkharchhu-I project in Bhutan.
FAQs
What is the execution model used for the Chamkharchhu-I project?
The project is being developed on a Build, Own, Operate and Transfer (BOOT) model with a concession period of 30 years from the Commercial Operation Date (COD).
When is the construction of Chamkharchhu-I scheduled to begin and conclude?
Construction is slated to commence in the first half of 2027, with commissioning planned within six years from groundbreaking.
Which earlier hydroelectric agreement did Adani Power and DGPC sign prior to Chamkharchhu-I?
In September 2025, Adani Power and DGPC signed an agreement to develop the 570 MW Wangchhu Hydroelectric Project, following an initial 5,000 MW capacity MoU signed in May 2025.
What is the corporate equity structure for the newly formed joint venture company in Bhutan?
The company will be incorporated in Bhutan with 10 million initial shares at BTN 100 each. DGPC contributes BTN 510 million for 5.1 million shares (51%), and Adani Power contributes BTN 490 million for 4.9 million shares (49%). Each party appoints three directors.
Sources
- adanipower.com (www.adanipower.com)
- businessworld.in (www.businessworld.in)
- dsij.in (insights.dsij.in)
- waterpowermagazine.com (www.waterpowermagazine.com)
Prepared by the PrepZen Editorial Team from official releases and verified reports, for exam preparation. Spotted an error? Write to prepzen.app@gmail.com.
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