Adani Power: Establishes 770 MW Chamkharchhu-I Hydroelectric JV in Bhutan

• Adani Power Ltd. and Druk Green Power Corporation Ltd. have formed a 770 MW Chamkharchhu-I Hydroelectric Joint Venture in Bhutan.
• Cyril Amarchand Mangaldas acted as legal counsel for Adani Power Ltd. on this project.
• This is the second major hydropower collaboration between Adani Power and DGPC, following the 570 MW Wangchhu Hydroelectric Project.
• The joint venture is part of a broader 5,000 MW hydropower development Memorandum of Understanding between the Adani Group and DGPC.

The current 770 MW Bhutan hydropower project is not an isolated endeavor but forms an integral part of a much broader strategic framework.

A significant cross-border energy infrastructure deal has materialized in Bhutan with the formation of the 770 MW Chamkharchhu-I Hydroelectric Joint Venture. This substantial project involves Adani Power Ltd. (APL) and Druk Green Power Corporation Ltd. (DGPC), marking a key development in the region's hydropower sector. The collaboration aims to harness the hydroelectric potential of Bhutan, contributing to energy generation and regional power supply.

Cyril Amarchand Mangaldas (CAM) provided crucial legal counsel to Adani Power Ltd. for this complex undertaking. The firm's involvement underscores the intricate legal structuring required for large-scale international joint ventures, particularly those in the energy sector. Their advisory role was instrumental in navigating the regulatory landscape and formalizing the partnership for the Adani Power Chamkharchhu-I Hydroelectric JV Bhutan.

This 770 MW Chamkharchhu-I Hydroelectric JV represents the second major hydropower collaboration between Adani Power Ltd. and Druk Green Power Corporation Ltd. Their established partnership includes the 570 MW Wangchhu Hydroelectric Project, for which an agreement was signed in September 2025 and construction is expected to commence in the first half of 2026, demonstrating a sustained commitment to joint energy initiatives. This continuity highlights a strategic alliance between the two entities in developing Bhutan's significant hydroelectric resources.

The current 770 MW Bhutan hydropower project is not an isolated endeavor but forms an integral part of a much broader strategic framework. It falls under a comprehensive 5,000 MW hydropower development Memorandum of Understanding (MoU) that was previously signed between the Adani Group and Druk Green Power Corporation Ltd. This overarching Adani Group DGPC MoU signifies a long-term vision for extensive energy cooperation and development across the region, with multiple projects contributing to the ambitious 5,000 MW target.

The establishment of the Adani Power Chamkharchhu-I Hydroelectric JV Bhutan is a pivotal event for several reasons, primarily due to its scale and the nature of the cross-border energy infrastructure deal. A 770 MW hydropower project represents a substantial addition to the energy grid, with significant implications for both Bhutan's domestic energy security and its potential for energy export. Such large-scale developments are critical for economic growth and regional stability, showcasing the potential for international partnerships in vital sectors.

Furthermore, the repeated collaboration between Adani Power and DGPC, guided by the 5,000 MW Adani Group DGPC MoU, sets an important precedent for future large-scale energy projects in South Asia. The involvement of CAM legal counsel Adani Power in structuring this complex joint venture provides valuable insights into the legal and commercial considerations for similar cross-border hydropower initiatives. The successful execution of such projects can serve as a model for how international entities can effectively partner to develop critical infrastructure, contributing to the broader energy landscape of the region.

Lawyers advising on cross-border energy infrastructure joint ventures, particularly in the hydropower sector in South Asia, should examine the legal structuring and counsel involved in this significant Adani-DGPC project as a precedent for similar large-scale developments.

Source: Original reporting via SCC Times