Tata Power, DGPC Secure $815 Million World Bank Funding for Bhutan’s Dorjilung Hydropower Project

The World Bank has approved a $815 million financial package to support the development of the 1,125 MW Dorjilung Hydropower Project in Bhutan, which marks the country’s largest hydroelectric venture under a public-private model, as per PTI report. Tata Power owns a 40% stake, with Bhutan’s Druk Green Power Corporation holding 60%. 

Dorjilung Hyrdopower Project Secures $815 Million Financing 

On January 23, 2026, the Board of Executive Directors of the World Bank sanctioned long-term financing for the Dorjilung Hydropower Project in Bhutan. The total package amounts to $815 million.  

Tata Power holds a 40% equity stake in the project, while the remaining 60% is with Bhutan’s Druk Green Power Corporation (DGPC). The project aims to generate over 4,500 GWh of clean electricity every year. 

Breakdown of Financial Package and Indian Involvement 

The financial aid package contains a $150 million grant and another $150 million credit from the International Development Association (IDA). It further includes a $15 million enclave loan from the International Bank for Reconstruction and Development (IBRD) to the Government of Bhutan.  

The Dorjilung Hydro Power Limited (DHPL), the Special Purpose Vehicle formed for the project, will also receive a $200 million IBRD enclave loan and a $300 million loan from the International Finance Corporation (IFC). 

Read More: India’s Power Ministry Pushes for Lower Electricity Costs for Consumers! 

Strategic Power Export and Domestic Impact in Bhutan 

This 1,125 MW project is expected to enhance Bhutan’s electricity generation capacity by nearly 40%. Annually, approximately 80% of the total electricity produced will be exported to India. 

Tata Power Trading Company Limited, a fully-owned subsidiary of Tata Power, is assigned to manage electricity import into India and its subsequent distribution within Indian territories. 

Socio-economic Outcomes of the Project 

The hydropower development in the eastern districts of Mongar and Lhuentse in Bhutan is projected to create significant employment during both construction and operational stages. The initiative is also expected to assist local entrepreneurship and boost local livelihoods. 

Conclusion 

The $815 million financial support from the World Bank for the Dorjilung Hydropower Project highlights institutional cooperation in clean energy generation. With Tata Power and DGPC jointly leading the project, and India being a major power importer, it signifies a collaborative development between Bhutan and India. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.