Adani Power shares gain nearly 6% as firm inks pact with Bhutan’s Druk Green to set ₹6,000 crore hydro project

According to the pact, Adani Power and Druk Green Power Corp Ltd (DGPC) will initiate the peaking run-of-river Wangchhu hydroelectric project on a BOOT (Build, Own, Operate, Transfer) model.

A power purchase agreement and a concession agreement were signed in this regard in the presence of the Prime Minister of Bhutan, Dasho Tshering Tobgay, and Gautam Adani, Chairman of the Adani Group, company statement said.

The Wangchhu project will see an investment of about ₹6,000 crore in setting up the power plant and related infrastructures. With the detailed project report already completed, construction work is expected to begin by the first half of 2026, and the completion is targeted within five years of groundbreaking.

"The Wangchhu hydroelectric project will critically meet Bhutan’s peak winter demand, when hydropower generation is low. During the summer months, it would export power to India,” said SB Khyalia, CEO, Adani Power.

The Wangchhu is the first hydroelectric project to be taken up under an MoU signed in May 2025 between Adani Group and DGPC for jointly developing 5,000 MW of hydropower in Bhutan.

Adani Group and DGPC are engaged in further discussions for future projects under this strategic partnership.

Adani Power is the largest private thermal power producer in India.

DGPC is the sole generation utility of Bhutan, with a current generation portfolio of a little over 2,500 MW and growing fast with Bhutan’s aspirations to achieve 25,000 MW in generation capacity by 2040.

Druk Holding & Investments, the commercial arm of the Royal Government of Bhutan, is DGPC’s shareholder. Established in 2008 to take a lead role in developing Bhutan’s hydropower resources, it has recently diversified beyond hydropower into tapping solar resources also.

In the early session, shares of Adani Power were trading at ₹634.10 apiece on the National Stock Exchange, gaining 4%.

Over a month’s period, Adani Power shares have gained over 5%. However, since March 7, 2025, which is six months, the stock has climbed 21%. Year-to-date, it has zoomed 16%.

The company’s market capitalisation stands at ₹2.35 lakh crore.

Last week, shareholders of Adani Power had approved the stock split proposal floated by the company through electronic voting. The company announced a stock split in the ratio of 1:5.

According to the notice, each equity share of ₹10 will be subdivided into five fully paid-up equity shares of the face value of ₹2 each, ranking pari passu in all respects. The voting period began at 9 am on August 6 and ended at 5 pm on September 4.