The Druk Green Power Corporation (DGPC) and India’s Adani Group signed a Memorandum of Understanding (MoU) on Sunday on the construction of the Wangchhu Hydropower Project.

An official from DGPC said that it was an expression of interest from DGPC and the Adani Group had agreed to construct the downstream projects of the Tala project.

“There are two options for taking this project forward: either as a 570MW run-of-the-river scheme, or a 900MW reservoir scheme,” said the DGPC official.

The Detail Project Reports for both options are already available. The two parties will discuss the technical and cost parameters.

The official said that a choice would be made based on the benefits from either the run-of-the-river or reservoir scheme.

The official also said that both sides agreed to work closely together to understand the project parameters and would come to the table to decide on whether to opt for the joint venture and implementation modalities.

“We need to work for three to five months to finalise the project,” said the official

The official said that since there were several hydropower projects currently, DGPC chose the Wangchhu project. He added that other projects would be explored for such co-operation in the future.

The chairman of Adani Group, Gautam Adani, announced on X that MoU was signed between DGPC for a 570MW green hydropower plant in Chukha. “It is admirable to see the Prime Minister of Bhutan advancing the vision of His Majesty The King and pursuing broad-ranging infrastructure initiatives across the kingdom.”

He also said that he was looking forward to working closely on hydro and other infra developments in Bhutan.

The government of Bhutan will continue to work closely with the government of India in the hydropower and solar energy sectors. This project is also an example of the cooperation between the two countries.

DGPC is reportedly in discussions with the Tata Group for the construction of 600MW Kholongchhu hydropower project.