UPERC Approves UP Power Corp's Plan to Import Power from Tata Power-DGPC Bhutan Project

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has cleared a proposal by Uttar Pradesh Power Corporation Ltd (UPPCL) to purchase 511 MW of hydropower from Bhutan through Tata Power Trading Company Ltd (TPTCL), as per the PTI report.  

The approval includes the Power Sale Agreement to be signed between the 2 companies for long-term supply. The power will be sourced from the 600 MW Khorlochhu Hydropower Project in Bhutan. 

Supply to Begin in 2030 

Under the approved arrangement, electricity supply will start from 1 May 2030 and continue for 30 years. UPPCL will receive 511 MW of power during the months of May to October every year, along with an additional 10% overload provision. 

The tariff for the supply has been fixed at ₹6.75 per unit at the Indo-Bhutan delivery point. 

Project Details 

The Khorlochhu Hydropower Project is being developed by Tata Power in partnership with Druk Green Power Corporation. The project is expected to generate nearly 1,748 million units of electricity annually during the 6-month supply period. 

UPPCL had given its in-principle approval for the procurement in December 2024 after discussions on pricing and supply terms. 

Meeting Future Power Needs 

According to documents submitted before the commission, UPPCL expects electricity demand in the state to rise over the coming years and has planned additional power procurement to bridge future requirements.  

The utility also stated that the hydropower purchase would help meet Hydro Power Obligation (HPO) targets under the Renewable Purchase Obligation framework of the Ministry of Power. 

The commission observed that imported hydropower from eligible projects can be counted towards HPO compliance. 

Read More: Rail Vikas Nigam Share Price Jumps Nearly 4% After Securing ₹221.33 Crore EPC Order! 

Tata Power Share Price Performance  

As of June 9, 2026, 12:52 pm, Tata Power Company Ltd share price was trading at ₹400.80, down 0.84% from the previous closing price. 

Conclusion 

The regulatory approval allows UPPCL to proceed with the long-term procurement from the Bhutan-based project. The agreement is to take effect from 2030 under the terms approved by the commission. 

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