Tata Power Limited on Tuesday announced that the company has proposed an investment of Rs 1,572 crore for acquiring a 40% stake in a special purpose vehicle (SPV) that will set up 1,125 MW Dorjilung hydro power project in Bhutan.
The total cost of the planned hydro power project stands at Rs 13,100 crore that would be incurred by Tata Power and Druk Green Power Corporation Limited (DGPC).
The acquisition will be done in one or more tranches for which, a shareholders agreement would be executed between the two entities.
Tata Power on Tuesday said it will invest Rs 1,572 crore for acquiring 40 per cent equity stake in a special purpose vehicle that will set up 1,125 MW Dorjilung hydro power project in Bhutan at an investment of Rs 13,100 crore.
According to a regulatory filing, the SPV is yet to be incorporated. The acquisition will not fall under the related party transaction of the power major. However, it stated that post-acquisition, the SPV will become an associate company of Tata Power and consequently become a related party.
“This project will support the company to accelerate its clean and green energy transition,” Tata Power stated.
As per the shareholders agreement towards the terms and conditions, the first tranche shall be completed within 6 months.
As the company announced its Q2 FY26 results on Tuesday, it announced the commencement of construction of 600 MW Khorlochhu Hydro Project in Bhutan. Tata Power owns 40% stake in the project, part of a 5 GW clean energy partnership. The Khorlochhu Hydro Project has signed a loan agreement of Rs 4,829 crore with PFC.
Speaking on the result announcement, CEO and MD, Praveeer Sinha said, “Tata Power is very well positioned to expand further with 10 GW of clean capacity under construction including a healthy pipeline of 5 GW Hybrid and FDRE projects.”
He also informed that the company’s backward-integrated solar manufacturing facilities are operating at full capacity. “With proposed amendments to the Electricity Act, Tata Power is well positioned to expand its distribution footprint to 40 million consumers by 2030,” he added.
