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Uttar Pradesh Power Corporation Secures Approval for 511-MW Hydro Project in Bhutan

The Uttar Pradesh Power Corporation has received approval from the Uttar Pradesh Electricity Regulatory Commission (UPERC) to source electricity from the 511-MW hydro project of Khorluchu Hydro Power in Bhutan. This move is aimed at strengthening the state's regional energy supplies and contributing to the country's clean energy transition.

Khorluchu Hydro Power is a joint venture between Tata Power and Druk Green Power Corporation. Uttar Pradesh Power Corporation Ltd (UPPCL) had approached UPERC to seek approval to source power from the Khorluchu Hydro Power Ltd (KHPL) project at a flat tariff of ₹6.75 per unit for a period of 30 years. The UPERC has given its approval to the request through its order dated May 27.

A power sale agreement is expected to be signed between KHPL and UPPCL in due course. The power supply from Bhutan is expected to help in strengthening regional energy security, drive India's clean energy transition, and meet Uttar Pradesh's peaking power requirements during the May to October period.

Read also: Emerging-Market Currencies Decline Following Strong US Jobs Report

Khorlochhu Hydro Power, a strategic joint venture between Druk Green Power Corporation (60%) and Tata Power (40%), aims to develop 1,125 MW of hydro project in Bhutan with an estimated cost of approximately ₹6,900 crore by 2029-2030.

CompanyOwnershipMW Capacity
Druk Green Power Corporation60%-
Tata Power40%-

Tata Power Company has a diversified portfolio across the entire power value chain. The company's total operational and pipeline capacity surpasses 26 GW, including approximately 17.5 GW of clean and green energy capacity (including projects under construction) and around 8.9 GW of thermal generation capacity, ensuring a balanced and resilient energy mix. Tata Power also has a strong transmission and distribution footprint, with over 7,400 circuit kilometres of transmission lines, including pipeline projects, and serves nearly 13 million customers across its distribution businesses, making it one of India's largest private power distribution companies.

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