In this paper, we describe the design, construction and performance of a new high resolution neutron powder diffractometer that has been installed at the Dhruva reactor, Trombay, India. The instrument employs novel design concepts like the use of bent, perfect crystal monochromator and open beam geometry, enabling the use of smaller samples. The resolution curve of the instrument was found to have little variation over a wide angular region and a $\Delta d/d \sim 0.3%$ has been achieved. The instrument provides sample environment of very low temperatures and high magnetic fields using a 7 Tesla cryogen-free superconducting magnet with a VTI having a temperature range of 1.5–320 K. The special sample environment and high resolution make this neutron powder diffractometer a very powerful facility for studying magnetic properties of materials.