Key Transaction Details

Parties Involved:

  • JSW Neo Energy Limited (JSWNEL) - wholly owned subsidiary of JSW Energy Limited
  • Druk Green Power Corporation Limited (DGPC) - company wholly owned by the Royal Government of Bhutan

Project Details:

  • 920 MW Punatsangchhu-III Hydroelectric Project
  • Location: Punatsangchhu River, Wangdue Phodrang District, Kingdom of Bhutan
  • Project type: Run-of-the-River scheme on Build-Own-Operate-Transfer (BOOT) basis
  • Development through a special purpose joint venture company to be incorporated in Bhutan as a public company

Ownership Structure:

  • DGPC: 51% equity stake
  • JSWNEL: 49% equity stake

Financial Considerations:

  • JSWNEL initial cash contribution: BTN 245 million
  • Further infusion based on project development progress
  • Subscription through cash consideration

Regulatory Approvals Required:

  • Corporate Regulatory Authority of Bhutan
  • Bhutanese FDI approvals
  • Other applicable regulatory approvals

Strategic Significance:

  • Marks JSW Energy's first power generation venture outside India
  • Detailed Project Report preparation is currently underway jointly by DGPC and the Company
  • Agreement signed in the presence of the Honourable Prime Minister of Bhutan

Company Context:

JSW Energy has total locked-in generation capacity of 32.4 GW (14.9 GW operational, 13.5 GW under construction) across thermal, hydro and renewables, plus 4.0 GW pipeline. In hydro specifically, the Company has an operating portfolio of 1,781 MW and is the largest private hydropower generator in India. The Company also has 29.6 GWh of locked-in energy storage capacity.

Management Commentary:

Mr. Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, stated that this partnership brings together two organizations with deep experience in developing and operating large hydroelectric assets in Himalayan terrain. He noted that the 920 MW project meaningfully strengthens JSW Energy's hydro portfolio and advances its green transition, adding clean, dispatchable capacity that complements wind and solar generation.

Corporate Targets:

JSW Energy aims to reach 30 GW of generation capacity and 40 GWh of energy storage capacity by 2030, and to achieve carbon neutrality by 2050.