Representative image.
New Delhi: Anil Ambani-led Reliance Group on Wednesday announced its foray into Bhutan and said it will set up 1,270 megawatt solar and hydroelectric projects in the Himalayan Kingdom.
It "entered into a strategic partnership agreement with Druk Holding and Investments Ltd (DHI), the commercial and investment arm of the Royal Government of Bhutan, to undertake various initiatives aimed at bolstering investment in the renewable and green energy landscape of Bhutan," the group said in a statement.
The partnership between Reliance Group and Druk Holding will focus on green energy generation, specifically solar and hydropower initiatives, while also exploring innovative green technologies.
The Indian group has set up a new company, Reliance Enterprises, for investments in Bhutan's renewable and green energy sector. Reliance Enterprises will be jointly promoted by Mumbai-listed Reliance Infrastructure Ltd and Reliance Power Ltd.
It will set up a 500 MW solar plant in two phases of 250 MW each over the next two years.
Reliance Power and Druk Holding will also jointly develop the 770 MW Chamkharchhu-1 hydro project. The project has been classified as a run-of-the-river project and under a concession model in accordance with Bhutan government policy.
"Reliance Group will collaborate with government-owned companies in Bhutan to implement infrastructure projects that support Bhutan's net-zero goals," the statement said.
The partnership agreement was signed today by Harmanjit Singh Nagi, President (Corporate Development), Reliance Power Ltd and Ujjwal Deep Dahal, CEO, Druk Holding and Investments, in the presence of Anil Ambani.
Jointly promoted by Reliance Infrastructure Ltd and Reliance Power Ltd, Reliance Enterprises will focus on enhancing sustainable energy solutions and implementing smart distribution and metering systems throughout Bhutan.
"This initiative underscores Reliance Group's long-term commitment to Bhutan and its renewable energy landscape. Moreover, it reflects a dedication to sustainable development, while drawing inspiration from Bhutan's renowned Gross National Happiness Index, aiming to promote both economic growth and the well-being of people," it said.
The 500 MW solar power plant will be set up in Gelephu Mindfulness City, Bhutan.
Once completed, the solar plant will be the largest of its kind, surpassing all existing solar installations in the country, and will produce clean, renewable energy to help mitigate the impacts of climate change.
Land for the project has been earmarked, and a technical team comprising experts from Reliance, Druk Holding, and external consultants is actively engaged in site assessments and technical studies, according to the statement.
This initiative will also mark the single largest investment in Bhutan's renewable energy sector and the largest foreign direct investment (FDI) by an Indian company in the country.
With Bhutan's current installed power generation capacity at 2,452 MW, the 770 MW Chamkharchhu-1 hydro project is particularly significant as it represents a joint venture between Bhutan and a private sector company in India.
Speaking on the occasion, Ujjwal Deep Dahal, CEO, Druk Holding and Investments, said, "The partnership between Reliance Enterprises and Druk Holding leverages the strengths of both organizations in the areas of green energy and development.
"We are pleased to be partnering with Reliance and together we are committed to delivering world-class clean energy projects that will benefit both India and Bhutan."
Reliance Power has a total installed capacity of 5,340 MW, including the 4,000 MW Ultra Mega Power Project in Sasan, Madhya Pradesh, in India.
Reliance Infrastructure is active in the energy sector, focusing on power distribution in Delhi as well as projects like Mumbai Metro.