New Delhi: JSW Energy Limited said on Wednesday that its wholly-owned subsidiary JSW Neo Energy Limited (JSWNEL) had executed a Shareholders' Agreement with Druk Green Power Corporation Limited (DGPC). The agreement covers the joint development of the 920 MW Punatsangchhu-III Hydroelectric Project in Bhutan.
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The project is on the Punatsangchhu River in Wangdue Phodrang district. It will be developed on a build-own-operate-transfer basis. The filing describes the vehicle as "a special purpose joint venture company proposed to be incorporated in Bhutan, in which DGPC and JSWNEL shall hold 51 percent and 49 percent equity stake, respectively."
On consideration, the annexure said, "JSWNEL shall subscribe to 49 percent of the equity stake of the JV in cash." On the amount, it said, "JSWNEL initial contribution is BTN 245 million. Any further infusion shall be based on further development of the project." The ngultrum is pegged at par with the Indian rupee. On that basis the initial contribution works out to about Rs 24.5 crore.
The statement said that the agreement "was signed in the gracious presence of the Honourable Prime Minister of Bhutan." It said the project "marks the Company's first power generation venture outside India." It added that "the Detailed Project Report preparation is under way, jointly by DGPC and the Company."
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, said the two organisations bring "deep experience in developing and operating large hydroelectric assets in Himalayan terrain." On the project's fit with the portfolio, he said: "At 920 MW, this project meaningfully strengthens our hydro portfolio and advances our green transition, adding clean, dispatchable capacity that complements wind and solar generation and supports stable, predictable cash flows."
The release put the company's total locked-in generation capacity at 32.4 GW. That comprises 14.9 GW operational, 13.5 GW under construction and a pipeline of 4 GW. Hydro accounts for an operating portfolio of 1,781 MW. The company describes itself as India's largest private hydropower generator.
Locked-in energy storage capacity is stated at 29.6 GWh. That comprises 26.4 GWh of pumped hydro storage and 3.2 GWh of battery energy storage. The company said it aims to reach 30 GW of generation capacity and 40 GWh of storage by 2030, and carbon neutrality by 2050.
The 51:49 split mirrors the structure Adani Group agreed for Bhutan's 570 MW Wangchhu project. DGPC holds 51 percent there and Adani 49 percent, also on a build-own-operate-transfer model, with investment reported at about USD 666 million.
Tata Power signed commercial agreements with DGPC in November 2025 for the 1,125 MW Dorjilung project, through an SPV in which DGPC holds 60 percent and Tata Power 40 percent, at a total project cost of Rs 13,100 crore. The two amended their MoU on May 8 to add the 404 MW Nyera Amari I and II project, taking identified capacity under that partnership to 5,033 MW.
Bhutan's move to private capital and multilateral finance for these projects marks a shift from the purely government-led model used earlier.
The two earlier stages on the same river were built under the intergovernmental route with Indian funding. The 1,020 MW Punatsangchhu-II was financed through 30 percent grant and 70 percent loan from the government. Its final unit was synchronised on August 27, 2025. The 1,200 MW Punatsangchhu-I remains under construction, with dam works commencing on April 10.
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Punatsangchhu-II took Bhutan's installed generation capacity past 3,500 MW. Bhutan's 1993 Power System Master Plan identified 17 hydropower projects in the Punatsangchhu basin with a combined capacity of 8,035 MW. Punatsangchhu-I and II were the two selected for the 2003 master plan.