Reliance Power, a part of Anil Ambani-led Reliance Group, has pulled out of commitments to develop 1.2 GW of renewable energy projects in Bhutan, two sources familiar with the situation told Infralogic.

They did not provide details.

Although Reliance announced its intent to develop the projects two years ago, a memorandum hasn’t been signed yet, a third source familiar said, adding that the group only entered into a “strategic partnership agreement.”

Reliance Power said in an October 2024 exchange filing that it intended to develop a 500 MW solar project as an equally owned venture with Duk Holding and Investments (DHI), an arm of the Bhutanese government. It was to also hold 49% of the 770 MW Chamkharchhu-1 hydroelectric project.

In May 2025, Reliance announced the signing of a commercial term sheet for a power purchase agreement for the solar project with Green Digital Private Limited. It said also that it was launching an international competitive bidding process to select an engineering, procurement and construction services provider.

The company is no closer to finalising a contractor over a year later, one of the sources said.

Bhutan is likely to go ahead with another Indian partner for both projects, one of the sources said, declining to provide more details.

Other Indian companies that have signed agreements to develop renewables projects in Bhutan are Adani Power and Tata Power. While Adani signed a memorandum of understanding to build 5 GW of hydro power, Tata Power is developing 5.5 GW of which 5 GW is hydro and 500 MW solar.

Tata Power is likely to soon sign a power sale agreement for its 511 MW Khorluchu hydro project with Indian electricity distribution company Uttar Pradesh Power Corporation, Indian state-media PTI reported last month.

Green Digital directed Infralogic to Reliance Power for comment on the solar agreement.

For the hydro project, DHI said that the “agreement pertains to Druk Green Power Corporation Limited (DGPC).”

DGPC operates as a subsidiary of Druk Holding and Investments, according to its website.

“There are currently no ongoing projects or engagements between DGPC and the Reliance Group. We are therefore not in a position to comment on Reliance’s reported business decisions”, DGPC told Infralogic.

Reliance Power did not respond to a request for comment.