Anil Ambani-led Reliance group announced on Wednesday it has entered into an agreement with Druk Holding and Investments Ltd (DHI), the commercial and investment arm of the Bhutan government, to jointly develop a solar and a hydroelectric project in the Himalayan kingdom.
The group also announced a new flagship company — Reliance Enterprises — which will be for promoting investment in Bhutan's renewable and green energy sector.
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.
A press statement said 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.
Reliance Group further disclosed it will collaborate with government-owned companies in Bhutan to implement infrastructure projects that support its net-zero goals.
The partnership agreement was signed 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.
Reliance Enterprises will join hands with Druk Holding to jointly develop a 500MW solar power plant in Gelephu Mindfulness City, Bhutan.
The project will be executed over the next two years in two phases of 250 MW each.
It 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.
Reliance Power Ltd and Druk Holding also announced plans to jointly develop the 770 MW Chamkharchhu-1 hydro project.
``We are pleased to be partnering Reliance and together we are committed to delivering world-class clean energy projects that will benefit both India and Bhutan,’’ Ujjwal Deep Dahal, CEO, Druk Holding and Investments, said.
Reliance Power has a total installed capacity of 5,340MW, including the 4,000 MW project at Sasan, Madhya Pradesh.