Adani Power's shares surged by up to 5% following an agreement between Adani Power and Druk Green Power Corporation for the 570 MW Wangchu Hydroelectric Project in Bhutan. Adani will invest approximately ₹6,000 crore in this project. This deal will further strengthen bilateral cooperation in the hydropower sector between the two countries.
Bhutan Deal: Shares of Gautam Adani's company, Adani Power, surged like a rocket on September 8th after a significant deal with Bhutan. The company signed a shareholder agreement and a concession agreement with Bhutan's state-owned company, Druk Green Power Corporation, for the 570 MW Wangchu Hydroelectric Project. This project, estimated at around ₹6,000 crore, will provide Adani Power with a b foothold in the hydropower sector. The deal was signed in the presence of Bhutan's Prime Minister, Dasho Tshering Tobgay, and Gautam Adani.
Market Sentiment and Adani Power's Surge
On the first trading day of the week, the domestic stock market opened in the green and maintained its strength throughout the afternoon. At 1:18 PM, the Sensex reached 81,121.50, up by 410 points. Adani Power was also part of this rally, becoming a top choice for investors after the deal in Bhutan.
Major Agreement Signed in Bhutan
Adani Power recently signed a shareholder agreement with Bhutan's state-owned company, Druk Green Power Corporation (DGPC), for the 570 MW Wangchu Hydroelectric Project. The Adani Group will invest approximately ₹6,000 crore in this project.
Additionally, a concession agreement for this project was also signed between the Royal Government of Bhutan and the Adani Group. Both these significant agreements were executed in the presence of Bhutan's Prime Minister, Dasho Tshering Tobgay, and Adani Group Chairman, Gautam Adani.
Statement from the Prime Minister of Bhutan
Bhutan's Prime Minister, Dasho Tshering Tobgay, stated that Bhutan and India have been partners in hydropower projects since the 1960s. This cooperation has benefited both nations. He added that with Adani Group's involvement, this project will be completed swiftly and lay a b foundation for the future.
DGPC's Plans and Goals
Dasho Chewang Rinzin, Managing Director of Druk Green Power Corporation, stated that Bhutan aims to develop an additional capacity of 15,000 MW of hydropower and 5,000 MW of solar power by 2040. Adani Group's technical and financial capabilities will play a significant role in achieving this goal.
Under the Memorandum of Understanding (MoU) signed between Adani Group and DGPC in May 2025, there is a plan to develop hydropower projects up to 5,000 MW in Bhutan. The current 570 MW Wangchu Project is part of this initiative. Both parties are now discussing the next projects.
Investor Enthusiasm and Share Performance
This deal with Bhutan has boosted the enthusiasm of Adani Power's investors. Investors believe that this project will accelerate the company's business growth and profitability. This is why there has been b buying activity in Adani Power's shares since this morning, with the stock climbing up to 5 percent.
Adani's Strengthened Position in the Energy Sector
Adani Power is already among the largest private thermal power producers in India. Now, a partnership with a country like Bhutan in the hydropower sector is further strengthening the company's portfolio. This will not only increase the company's revenue but also contribute significantly to the green energy sector.
