Tata Power and Bhutan-based Druk Green Power Corporation Ltd (DGPC) have partnered to develop a hydropower project at an estimated cost of Rs 6,900 crore. The 600 megawatts (MW) Khorlochhu Hydropower Project will be built on the Kholongchhu River in eastern Bhutan, Tata Power said in a statement on Wednesday.

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The clean power from the project will help meet Bhutan's increasing electricity requirements and complement and contribute to India's energy transition to renewables, it said. The partnership involves a 40 percent equity investment by Tata Power in Khorlochhu Hydro Power Ltd, a Public Private Partnership company.

The estimated project cost, including financing charges, is around Rs 6,900 crore with a construction timeline of 5 years, Tata Power said adding all the statutory approvals are in place for construction work to start. Praveer Sinha, CEO & MD, of Tata Power, said, "This project marks a significant step towards building a sustainable energy landscape underscoring Tata Power's commitment to a greener future.

" Dasho Chhewang Rinzin, MD, DGPC, said, this partnership is a significant step towards Bhutan's energy security and economic development as the country seeks to become a High-Income Gross National Happiness (GNH)Economy by 2034