Tata Power to Acquire 40% Stake in Bhutan Hydro Project SPV for ₹1,572 Crore

Tata Power Company Limited has announced plans to acquire a 40% equity stake in a Special Purpose Vehicle (SPV) to be jointly developed with Druk Green Power Corporation Limited (DGPC) for setting up a 1,125 MW Dorjilung Hydro Power Project in Bhutan. The project, estimated to cost around ₹13,100 crore, marks a significant step in Tata Power’s clean energy expansion strategy. According to the company’s filing with the exchanges, the acquisition will be made through cash consideration of approximately ₹1,572 crore, in one or more tranches over the next six months. The SPV, which is yet to be incorporated, will become an associate company of Tata Power following the transaction. The Dorjilung project will be a major cross-border hydroelectric initiative between India and Bhutan, reinforcing Tata Power’s focus on renewable and sustainable energy assets. The company clarified that this transaction does not fall under related party transactions and no Indian regulatory approvals are required. This acquisition strengthens Tata Power’s portfolio in the hydro segment and aligns with its long-term goal of achieving a 70% clean energy mix by 2030. The investment also enhances regional cooperation in green energy and positions Tata Power as a key player in South Asia’s renewable transition. Disclosure: This article is for informational purposes only. Follow us for more clean energy and market insights.