Tata Power has announced a proposed acquisition of a 40% equity stake in a Special Purpose Vehicle (SPV) for the 1125 MW Dorjilung Hydro Power Project in Bhutan, with a project cost of approximately ₹13,100 crore. This acquisition, to be completed in one or more tranches, requires a Shareholders Agreement with Druk Green Power Corporation Limited (DGPC). The deal aims to bolster Tata Power’s clean and green energy transition.
Strategic Investment in Hydro Power
Tata Power is set to acquire a 40% equity stake in a Special Purpose Vehicle (SPV) dedicated to the development of the 1125 MW Dorjilung Hydro Power Project located in Bhutan. This strategic move involves executing a Shareholders Agreement with Druk Green Power Corporation Limited (DGPC) and will be structured in one or more tranches.
Project Details and Financials
The Dorjilung Hydro Power Project carries an estimated project cost of approximately ₹13,100 crore. Tata Power’s investment for the 40% stake is valued at approximately ₹1,572 crore. The transaction is expected to be completed within 6 months, pending agreement on final terms and conditions in the Shareholders Agreement.
Impact and Future Outlook
This acquisition is projected to significantly support Tata Power’s commitment to clean and green energy transition. By investing in the Dorjilung Hydro Power Project, the company aims to enhance its portfolio of renewable energy assets and contribute to sustainable power generation. The SPV, post-acquisition, will become an associate company of Tata Power.
Source: BSE
