DGPC and JSW Neo Energy Sign Shareholders’ Agreement for Joint Development of 920 MW Punatsangchhu-III Hydroelectric Project
Thimphu, Bhutan – 12 August 2026: Druk Green Power Corporation Limited (DGPC), a subsidiary of Druk Holding and Investments Limited (DHI), and JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy Limited, signed the Shareholders’ Agreement (SHA) for the joint development of the 920 MW Punatsangchhu-III Hydroelectric Project in Wangdue Phodrang Dzongkhag, Bhutan. The Agreement was signed by Dasho Chhewang Rinzin, Managing Director of DGPC, and Mr. Sharad Mahendra, Joint Managing Director & CEO of JSW Energy Limited, in the presence of the Hon’ble Prime Minister of Bhutan.
The signing ceremony was attended by the Secretary of the Ministry of Energy & Natural Resources, Chairman and CEO of DHI, senior officials from the Embassy of India in Bhutan, Board Directors and the management of DGPC, and representatives of JSW Neo Energy.
The signing of the SHA establishes the framework for a strategic partnership between DGPC and JSW Neo Energy for the development of the 920 MW Punatsangchhu-III Hydroelectric Project through a joint venture company. It marks a significant milestone in the development of Bhutan’s immense hydropower resources.
Under the agreed shareholding structure, DGPC will hold 51% and JSW Neo Energy will hold 49% of the equity share capital of the joint venture company. The Detailed Project Report (DPR) for the project is currently under preparation jointly by DGPC and JSW Neo Energy.
The partnership brings together DGPC’s extensive experience in the design, engineering, development, and operation and management of hydropower projects in Bhutan with JSW Energy’s experience in developing and operating large-scale power generation assets. The collaboration marks JSW Energy’s first power generation venture outside India.
The 920 MW Punatsangchhu-III Hydroelectric Project is expected to contribute to the expansion of Bhutan’s clean and renewable energy generation capacity. Its development will support Bhutan’s efforts to harness its hydropower potential, strengthen energy security and contribute to the country’s long-term sustainable economic development.
The project also builds on the longstanding exemplary cooperation between Bhutan and India in the hydropower sector.
(Statement of Dasho Chhewang Rinzin, Managing Director, DGPC)
The signing of the Shareholders’ Agreement for the Punatsangchhu III project marks a very significant milestone in DGPC’s efforts to forge strategic partnerships to take forward the development of the country’s immense clean energy resources in the backdrop of Bhutan’s economic transformation and fast growing demand for electricity. The partnership combines DGPC’s longstanding expertise in hydropower development and operations with JSW Neo Energy’s extensive experience in India’s energy sector, creating opportunities for long-term value creation.
(Statement of Mr. Sharad Mahendra, Joint Managing Director & CEO, JSW Neo Energy Limited)
We are privileged to partner with Druk Green Power Corporation on Punatsangchhu-III, our first power generation venture outside India — bringing together two organizations with deep experience in developing and operating large hydroelectric assets in Himalayan terrain. Bhutan is one of the world’s few carbon-negative nations, and we are proud to contribute to the further development of its clean energy resources. At 920 MW, this project meaningfully strengthens our hydro portfolio and advances our green transition, adding clean, dispatchable capacity that complements intermittent renewables and supports stable, predictable cash flows. The partnership also reflects the enduring energy cooperation between India and Bhutan.
(Remarks of the Hon’ble Prime Minister of Bhutan)
Commend the signing of the Shareholders’ Agreement; recognizing it as an important milestone in the continued development of Bhutan’s renewable energy sector and in strengthening cooperation between Bhutan and India. Such strategic partnerships will be significant in mobilizing expertise, investments and capabilities to unlock Bhutan’s hydropower potential and support the country’s long-term economic growth aspirations. The continued support of the Government of India in encouraging such investments in Bhutan and providing access to Indian markets for both capital and energy exports was critical for the success of such strategic partnerships.
About DGPC
Druk Green Power Corporation Limited (DGPC) is Bhutan’s generation utility and a wholly owned subsidiary of Druk Holding & Investments Limited, the commercial arm of the Royal Government of Bhutan. With decades of experience in hydropower development, engineering, operations and asset management, DGPC plays a central role in developing Bhutan’s renewable energy resources and advancing the country’s energy security and sustainable economic development.
About JSW Neo Energy Limited
JSW Neo Energy Limited is a wholly owned subsidiary of JSW Energy Limited and forms part of its clean energy portfolio. Through the Punatsangchhu-III partnership, JSW Neo Energy is undertaking its first power generation venture outside India in collaboration with DGPC, bringing together complementary expertise in hydropower development, project execution and operations to support the successful development of the 920 MW project and further strengthen energy cooperation between Bhutan and India.
