Why in News

Bhutan and the World Bank signed financing agreements worth USD 515 million for the 1,125 MW Dorjilung Hydroelectric Power Project on the Kurichhu River, eastern Bhutan. The project will generate over 4,500 GWh annually, with approximately 80% to be supplied to India. Commissioning: September 2031. This is Bhutan’s largest Public-Private Partnership (PPP) hydropower project and its second-largest hydropower project overall.

Dorjilung Project — Key Specifications

Feature Detail
Location Kurichhu River, eastern Bhutan
Installed capacity 1,125 MW
Annual generation Over 4,500 GWh
Power supply to India ~80% of annual generation
Total project cost ₹13,100 crore (~USD 1.7 billion)
Dam type Concrete-gravity dam
Dam height ~139.5 metres
Powerhouse Underground
Turbines Six Francis turbines
Developer Dorjilung Hydro Power Limited (DHPL)
Equity structure Druk Green Power Corporation (DGPC): 60% + Tata Power: 40%
World Bank financing USD 515 million
Commissioning September 2031
Significance Bhutan’s largest PPP hydro; second-largest hydro project overall

India–Bhutan Hydropower Relationship

India is Bhutan’s largest buyer of hydroelectric power — a cornerstone of the bilateral relationship:

Parameter Value
Bhutan’s total installed hydro capacity ~2,400 MW (existing; Dorjilung adds 1,125 MW)
Share of electricity in Bhutan’s total exports ~63% of Bhutan’s total exports
India’s electricity import from Bhutan ~6–8 billion units/year
Framework India-Bhutan Friendship Treaty 1949 (and 2007 revision); DGPC–NTPC partnerships
Major existing projects Tala (1,020 MW), Chukha (336 MW), Kurichhu (60 MW), Mangdechhu (720 MW), Punatsangchhu I & II (under construction)
India’s financing model India provides grants + loans for Bhutanese hydro; Bhutan repays through electricity exports

Kurichhu River — Geography

Feature Detail
River name Kurichhu (also Kuri Chhu)
Origin Southern slopes of Tibet; flows through eastern Bhutan
Basin Flows into Brahmaputra system in Assam
Existing project Kurichhu HEP (60 MW) — already operational
New project Dorjilung HEP (1,125 MW) — upstream of existing

Tata Power — India’s Largest Integrated Power Company

Feature Detail
Parent Tata Group
Total capacity ~14+ GW (thermal + renewable + hydro)
Renewables India’s largest renewable energy developer
Bhutan presence 40% equity in Dorjilung (first major Bhutan investment by Tata Power)
Other major projects Mundra UMPP (3,960 MW), Maithon HEP (1,000 MW)

World Bank — Role in South Asia Energy

The World Bank (IBRD/IDA) finances infrastructure in member countries:

  • Bhutan is a World Bank member (IDA-eligible — lower-income country)
  • USD 515 million for Dorjilung is a concessional IDA credit + IBRD loan mix
  • Complements India’s contribution to regional hydro development

UPSC Relevance

Paper Angle
GS2 — International Relations India-Bhutan hydropower ties, Neighbourhood First Policy, power export diplomacy
GS3 — Economy Hydropower economics, PPP model, World Bank financing
GS1 — Geography Kurichhu River, Brahmaputra system, Bhutan geography

Mains Keywords: Dorjilung Hydropower, Kurichhu River, Bhutan India hydropower, Tata Power, Druk Green Power Corporation, World Bank IDA, PPP hydropower, Brahmaputra basin, Neighbourhood First Policy, energy diplomacy

Prelims Facts Corner

Item Fact
Dorjilung capacity 1,125 MW
Location Kurichhu River, eastern Bhutan
Annual generation 4,500+ GWh
Power to India ~80% of annual generation
Project cost ₹13,100 crore (~USD 1.7 billion)
World Bank financing USD 515 million
Developer Druk Green Power Corporation (60%) + Tata Power (40%)
Dam type Concrete-gravity; 139.5 m height; underground powerhouse
Turbines 6 Francis turbines
Commissioning September 2031
Significance Bhutan’s largest PPP hydro; 2nd largest hydro project overall
Kurichhu flows into Brahmaputra system (Assam)