Adani Power shares gained over 2% in early trade on Tuesday after the company signed an agreement with Bhutan’s state-owned Druk Green Power Corporation (DGPC) to develop a 770 MW hydropower project. 

The partnership covers the Chamkharchhu-I Hydroelectric Project, which will be developed on the Chamkarchhu River in Bhutan’s Zhemgang district. Adani Power and DGPC will hold 49% and 51% stakes, respectively, in the project company under a Build, Own, Operate and Transfer (BOOT) model. The project will have a 30-year concession from the start of commercial operations.

Construction is expected to begin in the first half of 2027, with commissioning targeted within six years of groundbreaking. The project will primarily support Bhutan’s electricity needs during the winter months, while surplus power could be exported to India during the summer. This could strengthen energy cooperation between India and Bhutan while expanding Adani Power’s presence in renewable energy.

The latest agreement is also part of a larger 5,000 MW hydropower development partnership between the Adani Group and DGPC. The broader memorandum of understanding was signed in May 2025. It follows the 570 MW Wangchhu Hydroelectric Project agreement signed by Adani Power and DGPC in September 2025.

For Adani Power, the project adds to its longer-term diversification into cleaner energy while creating an opportunity to participate in Bhutan’s large hydropower potential. The company and DGPC are also evaluating additional projects under their wider 5,000 MW partnership.

The development comes as Indian markets trade slightly higher on Tuesday, with the Nifty 50 and Sensex gaining around 0.3% in morning trade. Investors are also watching quarterly business updates, oil prices and the Reserve Bank of India’s policy decision due on Wednesday.

Adani Power’s latest hydropower agreement is therefore strategically significant, although the project is still at an early development stage and construction is expected to begin only in 2027. Investors will track project execution, funding requirements and progress on the broader Bhutan partnership.

At 11:40 am, the shares of Adani Power were trading 1.11% higher at Rs 203.25 on NSE. 

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