Adani Power Surges Over 6% on Landmark ₹6,000 Crore Hydropower Deal in Bhutan

Adani Power shares saw a significant rally on Monday, surging over 6% after the company announced a landmark ₹6,000 crore deal to construct a major hydroelectric power plant in Bhutan. This move marks a strategic international expansion for the Adani Group’s energy arm and signals a deepening of energy cooperation between India and its Himalayan neighbour.

For investors, this news is more than just a single project; it offers a clear view of Adani Power’s long-term strategy to diversify its energy portfolio and establish a strong foothold in the renewable energy sector beyond India’s borders. Let’s break down the details of this pivotal agreement.

Decoding the Landmark Hydropower Deal

In a filing to the stock exchanges, Adani Power Limited (APL) confirmed it has signed a definitive shareholders’ agreement with Bhutan’s state-owned utility, Druk Green Power Corporation (DGPC).

Here are the key highlights of the agreement:

• The Project: The two companies will jointly develop a 570-megawatt (MW) peaking run-of-river hydroelectric project on the Wangchhu river in Bhutan.
• The Joint Venture: A new public company will be incorporated in Bhutan to execute the project on a Build, Own, Operate, Transfer (BOOT) model. DGPC will hold the majority stake of 51%, while Adani Power will hold the remaining 49%.
• The Investment: The project is estimated to involve an investment of approximately ₹6,000 crore (₹60 billion).
• The Timeline: With the detailed project report (DPR) already complete, construction is slated to begin in the first half of 2026 and is expected to be completed within five years.

This collaboration is the first concrete step under a Memorandum of Understanding (MoU) signed between the Adani Group and DGPC in May 2025 to jointly develop 5,000 MW of hydropower capacity in Bhutan.

Market Reaction: A Resounding Thumbs-Up

The stock market gave an immediate and enthusiastic approval to the announcement. As soon as the news broke, Adani Power’s shares climbed sharply.

On the NSE, the stock surged over 6.5% to hit an intraday high of ₹649.60. The rally was backed by heavy trading volumes, indicating strong investor interest and confidence in the project’s strategic value and its potential to generate stable, long-term revenue.

This deal is seen as a major win for Adani Power, primarily known as India’s largest private thermal power producer. The venture into large-scale international hydropower marks a significant diversification of its energy portfolio.

Strategic Impact: A Win-Win for Both Nations

This project is being hailed as a model for cross-border energy cooperation, designed to be mutually beneficial by addressing the unique energy needs of both nations.

For Bhutan, a country renowned for its commitment to sustainable development, the project is crucial. SB Khyalia, CEO of Adani Power, explained the dual advantage: “The Wangchhu hydroelectric project will critically meet Bhutan’s peak winter demand, when hydro power generation is low. During the summer months, it would export power to India.”

This structure ensures Bhutan’s energy security during its lean season while allowing it to earn revenue by selling surplus power to the energy-hungry Indian market during the monsoon months.

Dasho Chhewang Rinzin, Managing Director of DGPC, highlighted that partnering with the Adani Group would “fast-track implementation, strengthen energy security, and enhance grid connectivity between Bhutan and India.”

Investor Outlook: Key Factors to Monitor

While the initial excitement is palpable, seasoned investors will be closely monitoring the project’s execution. Here are a few key factors to watch in the coming months and years:

• Project Timelines: The company has set an ambitious five-year completion target from the start of construction in 2026. Adherence to this schedule will be critical for the project’s financial viability.
• Financing Details: While the overall investment is pegged at ₹6,000 crore, further details on the financing mix (debt vs. equity) will be important to understand the impact on Adani Power’s balance sheet.
• Future Projects: This 570 MW project is just the beginning. Investors should watch for announcements on further projects under the 5,000 MW MoU, which could provide a long-term growth pipeline for the company.
• Regulatory Approvals: As a cross-border project, it will require seamless coordination and approvals from authorities in both India and Bhutan. Any delays on this front could impact the timeline.

This strategic foray into Bhutanese hydropower is a bold and promising move for Adani Power. It not only expands the company’s renewable energy footprint but also aligns it with India’s broader diplomatic and economic goals in the region. For investors, it adds a new, compelling chapter to Adani Power’s growth story.

---

This article is for informational purposes only and does not constitute investment advice. Please conduct your own research before making any investment decisions.