Tata Power has executed a Shareholders Agreement to acquire a 40% equity stake in a Special Purpose Vehicle (SPV) for the 1125 MW Dorjilung Hydro Power Project in Bhutan. The project, estimated at ₹13,100 crore, will be developed in partnership with Druk Green Power Corporation Limited (DGPC) and supports Tata Power’s commitment to clean and green energy. The first tranche of the acquisition is expected to close within 6 months.
Strategic Investment in Hydro Power
Tata Power is set to acquire a significant 40% equity stake in a Special Purpose Vehicle (SPV) that will focus on hydro power development. The move aims to boost Tata Power’s portfolio in clean and green energy, aligning with its strategic objectives for sustainable growth. This investment was formalized through a Shareholders Agreement executed with Druk Green Power Corporation Limited (DGPC) on November 21, 2025.
Project Details and Financial Commitment
The project centers around the development of the 1125 MW Dorjilung Hydro Power Project located in Bhutan. The total project cost is estimated at approximately ₹13,100 crore. Tata Power’s investment for the 40% equity stake will be approximately ₹1,572 crore, to be invested in one or more tranches. The company anticipates that the first tranche of this investment will be completed within the next 6 months.
Impact and Future Outlook
This acquisition marks a significant step for Tata Power in expanding its renewable energy footprint. The development of the Dorjilung Hydro Power Project supports the company’s commitment to accelerating its clean and green energy transition. This project is expected to enhance Tata Power’s long-term energy generation capabilities and contribute to a more sustainable energy future.
Source: BSE
