Key Highlights
- Tata Power signs shareholders agreement with Druk Green Power Corporation Limited.
- Acquisition involves 40 percent equity stake in a new SPV.
- Project aims to develop the 1125 MW Dorjilung Hydropower Project in Bhutan.
- Total project cost estimated at ₹13100 crore.
- Acquisition cost around ₹1572 crore in cash.
- First tranche expected to be completed within 6 months.
Tata Power Company Limited has executed a Shareholders Agreement with Druk Green Power Corporation Limited (DGPC) for acquiring a 40% equity stake in a Special Purpose Vehicle (SPV) that will oversee the development of the 1125 MW Dorjilung Hydropower Project in Bhutan. The update follows the company’s earlier communication regarding the proposed investment.
The SPV is yet to be incorporated, and additional details will be provided once the process is completed. The hydropower project carries an estimated cost of ₹13,100 crore and aligns with Tata Power’s broader strategy to expand its clean and green energy portfolio.
The acquisition does not currently fall under related-party transactions, though the SPV will become an associate company of Tata Power post-investment. The transaction will be completed through cash consideration, with an estimated outlay of around ₹1,572 crore for the 40% stake, executed in one or more tranches.
The first tranche of the acquisition is expected to be completed within six months, subject to the terms outlined in the Shareholders Agreement. The deal marks a strategic step for Tata Power in advancing its regional clean-energy commitments.