International Relations 07 May 2026

Bhutan Gets $515 Million World Bank Funding for Dorjilung Hydropower Project

Bhutan secured $515 million from the World Bank for the 1,125 MW Dorjilung Hydropower Project, its largest, being built by a Druk Green Power-Tata Power joint venture and set to support power exports to India.

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Bhutan has secured a $515 million financing agreement from the World Bank to develop the 1,125 MW Dorjilung Hydropower Project. This is the largest hydropower project in Bhutan.

The project is being developed under a Public-Private Partnership (PPP) model. It is being executed by Dorjilung Hydro Power Limited, a joint venture between Bhutan's Druk Green Power Corporation and India's Tata Power.

The financing package brings together support from several World Bank institutions, including the IBRD, IDA and IFC. This reflects strong international cooperation in clean energy development.

The project has a direct India connection. Once completed, it will greatly increase Bhutan's power generation capacity and support electricity exports to India. Hydropower cooperation is a key pillar of the close ties between India and Bhutan, and Indian companies and demand play a central role in Bhutan's energy sector.

Key Points to Remember

  • Bhutan secured $515 million World Bank financing for the Dorjilung Hydropower Project
  • Project capacity: 1,125 MW; Bhutan's largest hydropower project
  • Developed on a PPP model by a Druk Green Power Corporation-Tata Power (India) joint venture
  • Funding from World Bank institutions IBRD, IDA and IFC
  • Will support electricity exports to India; key to India-Bhutan ties

Exam Relevance

Relevant for UPSC Prelims (International Relations — India-Bhutan, Economy), SSC CGL (General Awareness) and Banking exams (International Organisations — World Bank).

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bhutan world-bank hydropower dorjilung india-bhutan tata-power