In a landmark move for South Asia’s green energy landscape, the Royal Government of Bhutan and the World Bank signed financing agreements totaling $515 million on May 5, 2026, for the Dorjilung Hydropower Project. Situated on the Kurichhu River, the $1.7 billion initiative will be Bhutan’s largest hydropower plant developed under a public-private partnership, with Druk Green Power Corporation (60%) and Tata Power (40%) leading the venture. Designed to generate 4,500 GWh annually, the project will eliminate Bhutan’s winter energy shortages while exporting surplus power to India. The innovative financing model, which includes grants and concessional credits, is expected to catalyze an additional $900 million in private investment and displace 3.3 million tons of CO2 every year.
Prime Minister Narendra Modi’s recent trip to Bhutan is one more evidence that friendship and mutual respect, which are the main traits of the two neighbors’ relationship, are not only words but facts as well. The visit was definitely the consolidation of India’s “Neighbourhood First” policy and also a reaffirmation to Bhutan that it is the centre of that policy.
The Prime Minister of Bhutan, Dasho Tshering Tobgay, plans to visit the Ram temple in Ayodhya on September 5, accompanied by his spouse,Tashi Doma and officials by a special plane. Bhutan’s Finance Secretary Dasho Leki Wangmo is also expected to accompany the PM.
