Oct 2 (Reuters) -

Anil Ambani-run Reliance Group said on Wednesday it would

jointly develop solar and hydro power projects in Bhutan along

with the government's investment arm.

The Indian conglomerate, run by the younger brother of

Asia's richest man Mukesh Ambani, will form a new subsidiary

that is equally owned by Mumbai-listed units Reliance Power

and Reliance Infrastructure.

The subsidiary will develop 500 megawatts of solar power

projects and 770 megawatts of hydro power projects with Bhutan's

Druk Holding and Investments.

The conglomerate did not disclose the investment amount for

the projects.

Reliance Power aims to expand in the renewable energy

sector. The electric utility company last week raised $183

million last week and plans to raise more funds on Thursday.

The Mumbai-headquarted company had last week said that it

had no debt from banks and financial institutions after settling

dues of $461 million towards its unit.

In June, Indian billionaire Gautam Adani's ports-to-power

conglomerate signed an agreement for a 570 megawatt green hydro

project in Bhutan.

($1 = 83.9370 Indian rupees)