Adani Power shares went up by five percent to Rs 640.55, following a strategic shareholders agreement declared by the company with Druk Green Power Corporation in Bhutan to develop a 570 MW hydro project at Wangchhu, the first significant move by the company into international renewable energy markets, and improved bilateral energy cooperation between India and Bhutan.
Strategic partnership drives stock surge
Economic Times reports that shares of Adani Power Ltd rose by 5 percent to 640.55, the highest point of the day in BSE, after the firm announced the presence of a shareholders’ agreement with Drug Green Power Corporation Ltd, which was the state utility in Bhutan. The date on which the agreement is being signed is the 5th of September, 2025; a big milestone in the development of a hydroelectric project of 570 MW in Wangchhu, Bhutan.
In its filing, the company has mentioned that the two parties will jointly incorporate a Bhutan-based public company to execute the project. The arrangement of shareholding in the resultant entity will be 49:51, with APL holding 49 percent and DGPC holding the majority 51 percent.
These contracts were signed in Bhutan in the presence of the Prime Minister of Bhutan, Dasho Tshering Tobgay, and Adani Group chair Gautam Adani. A pre-preliminary appointment was also achieved in respect of the power purchase agreement and a concession agreement in the Royal Government of Bhutan.
Build-operate-transfer framework established
The work will be carried out within a framework of build, own, operate, transfer (BOOT) and will have an approximate investment of approximately Rs60bn (680m) to construct the renewable energy plant and the infrastructure related to it, as reported by Yahoo Finance. The project report is completed in detail, and they are to begin the construction in the first half of 2026.
Adani Power CEO SB 2 Khyalia said: Bhutan is a global role model in sustainable development, and we are quite delighted to lead in the development of the natural resources of the country in this renewable energy project. The Wangchhu hydroelectric project will come as a lifeline to the peak winter demand in Bhutan when there is low power generation through hydro.
According to the shareholders’ agreement, both APL and DGPC will be given the right to nominate three directors to the board of the project company. The two entities have also agreed to contribute capital on occasions in the agreed proportion.
A portion of the greater 5GW development plan
This is the initial hydro-electric project to be launched after a memorandum of understanding was signed in May 2025 between Adani Group and DGPC, and to jointly develop 5GW of power in Bhutan.
DGPC managing director Dasho Chhewang Rinz said: “Bhutan and India have, since the 1960s, collaborated closely to utilise the massive hydropower potential that Bhutan has been bestowed with. This hydropower co-operation has done wonders for both nations and is believed to be the pillar of the fine and cordial relations that the two nations share.
Five-year building schedule
Originally, the project enterprise will sell 4.9 million shares to APL and 5.1 million shares to DGPC at the price of BTN 100 (Bhutanese Ngultrum). Standard clauses also found in the agreement are pre-emptive rights, restrictions on transfers of shares, events of default, and non-compete.
It is expected that the construction will be completed after five years since commencing construction. The project would, in summer, send its power to India, and satisfy the urgent winter demand in Bhutan when hydropower production usually drops.
The strategic alliance between Adani Power and DGPC is a major step in the energy collaboration between India and Bhutan and will take the company a step closer to thriving in renewable energy markets. The start of construction in 2026 and a five-year projected completion date make it a 570 MW project that forms the basis of further hydro development in the region.