Thimphu / New Delhi – January 5, 2026:
In a significant boost to regional renewable energy cooperation, the Adani Group has officially commenced construction on the 570 MW Wangchhu Hydropower Project in Bhutan, marking a key milestone in India–Bhutan energy collaboration. The project’s foundation stone was laid at a ceremony in Thimphu, attended by Gautam Adani, Chairman of the Adani Group, and Bhutan’s Prime Minister, Dasho Tshering Tobgay, underscoring the strategic importance of the initiative.
Strategic Partnership Structure
The Wangchhu project is being developed as a joint venture between the Adani Group and Druk Green Power Corporation (DGPC), Bhutan’s state-owned hydropower utility. Under the agreement:
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DGPC holds a 51 % majority stake, ensuring strong local ownership,
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Adani Group holds the remaining 49 % stake in the venture.
This ownership structure reflects Bhutan’s emphasis on retaining majority control of its natural resources while leveraging international expertise for large-scale infrastructure execution.
Project Investment and Timeline
The Wangchhu Hydropower Project is estimated to require an investment of approximately ₹60 billion (around ₹6,000 crore). Construction activities are expected to be completed within five years of groundbreaking, targeting full commercial operation by late 2029-early 2030.
Industry analysts note that the project will not only contribute to Bhutan’s domestic power needs but also reinforce cross-border power trade with India, particularly during peak demand periods.
Part of a Broader Energy Agenda
The launch of the Wangchhu project follows a landmark Memorandum of Understanding (MoU) signed in May 2025 between the Adani Group and DGPC to jointly develop up to 5,000 MW of hydropower capacity across multiple sites in Bhutan.
This comprehensive partnership aims to harness Bhutan’s abundant river resources and expand its renewable energy portfolio, while integrating large-scale clean power generation with India’s energy markets. The broader framework also envisions future projects and collaboration opportunities in pumped storage and other hydroelectric developments.
Bilateral and Regional Significance
Bhutan’s hydropower sector has historically been a cornerstone of its economic growth and bilateral engagement with India. The Wangchhu project reinforces this tradition by combining Bhutan’s renewable potential with the technical and financial experience of a major Indian infrastructure conglomerate.
Speaking at the ceremony, Gautam Adani highlighted the importance of long-term collaboration built on “sustainability, trust, and shared value”, and reaffirmed the group’s commitment to further strengthen the energy partnership between both nations.
Economic and Environmental Impact
Beyond immediate energy gains, the project is anticipated to:
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Boost local employment and skills development through construction and ancillary works.
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Enhance grid reliability in Bhutan, especially during winter months.
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Promote exportable renewable energy, supporting regional decarbonisation goals.
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Attract further foreign and domestic investment into Bhutan’s clean energy landscape.
Outlook
The commencement of the Wangchhu Hydropower Project marks a crucial step forward in India–Bhutan cooperation on sustainable energy infrastructure. As construction progresses, the project is expected to serve as a blueprint for future public-private international ventures in South Asia’s renewable sector.
For Metalsbuy’s audience, this development signals expanding opportunities in hydroelectric component supply chains, power equipment manufacturing, and long-term energy infrastructure financing.