Tata Power has successfully completed the first tranche of its strategic investment in Dorjilung Hydro Power Limited (DHPL), a Special Purpose Vehicle developing a 1125 MW hydro project in Bhutan. The company invested ₹50 crore, acquiring 50,00,000 equity shares, which represents 40% of DHPL’s issued capital. This move aligns with Tata Power’s commitment to accelerating its clean and green energy transition. The remaining tranches of the investment will be completed over the next six years.
Strategic Investment Update in Bhutan Project
Further to the earlier intimation dated November 21, 2025, Tata Power announces the completion of the first tranche of the strategic investment in Dorjilung Hydro Power Limited (‘DHPL’). DHPL is the Special Purpose Vehicle responsible for the 1125 MW Dorjilung Hydro Power Project located in Bhutan, with an estimated total project cost of approximately ₹13,100 crore.
Financial Commitment and Stake Acquisition
In this initial phase, the Company has invested ₹50 crore. This investment was used to subscribe to 50,00,000 equity shares of ₹100 each. This acquisition equates to 40% of the issued and paid-up equity capital of DHPL. The total planned investment for the full acquisition is approximately ₹1,572 crore.
Project Rationale and Structure
The acquisition of the stake in DHPL is strategic, aimed at supporting the Company’s goal to accelerate its clean and green energy transition. The project belongs to the Power Sector. Although the acquisition itself does not constitute a related party transaction initially, DHPL will become an associate company of Tata Power post-acquisition, thus classifying it as a related party subsequently.
Timeline and Approvals
No Indian Governmental or regulatory approvals were required for this phase of the acquisition. Regarding the timeline, the first tranche is completed. The remaining investment tranches are scheduled to be made over a period of six years.
Target Entity Overview
The primary business of the acquired entity revolves around the development of the hydroelectric power project. Details regarding the entity’s size, turnover, Net Worth, and other significant financial information (brief details) were reported as N.A. (Not Available) for the last three years, given its status as a project vehicle.
Source: BSE
