Tata Power Signs Agreement for 40% Stake in Bhutan Hydro Project
Filing Summary
On November 21, 2025, Tata Power Company Ltd announced the execution of a Shareholders Agreement with Druk Green Power Corporation Limited for acquiring a 40% equity stake in a Special Purpose Vehicle (SPV). This SPV will develop the 1125 MW Dorjilung Hydro Power Project in Bhutan, with an estimated project cost of approximately ₹13,100 crore. The acquisition, valued at approximately ₹1,572 crore, will be completed in one or more tranches. No Indian governmental or regulatory approvals are required for this transaction.
On November 21, 2025, Tata Power Company Ltd disclosed the execution of a Shareholders Agreement with Druk Green Power Corporation Limited (DGPC). This agreement pertains to the acquisition of a 40% equity stake in a Special Purpose Vehicle (SPV) that will be responsible for the development of the 1125 MW Dorjilung Hydro Power Project in Bhutan. The project has an estimated cost of approximately ₹13,100 crore.
The acquisition will be executed in one or more tranches, with the first tranche expected to be completed within six months. The total consideration for the 40% equity stake is approximately ₹1,572 crore, and the transaction will be conducted through cash consideration. The SPV is yet to be incorporated, and further updates will be provided once this process is complete.
The acquisition does not fall under related party transactions. However, post-acquisition, the SPV will become an associate company of Tata Power, thereby becoming a related party. No Indian governmental or regulatory approvals are required for this transaction.
The Dorjilung Hydro Power Project is a significant development in the power sector, focusing on clean and green energy. The project aligns with Tata Power’s strategic objectives in the renewable energy sector.
Druk Green Power Corporation Limited is a key player in Bhutan’s power sector, focusing on the development and management of hydroelectric projects. The collaboration with Tata Power is part of its ongoing efforts to enhance energy infrastructure and capacity in the region.
Tata Power Company Ltd is a leading integrated power company in India, with a focus on sustainable and renewable energy solutions. The company is actively expanding its portfolio in the clean energy sector, aligning with global trends towards sustainable energy development.