Key Highlights
- Tata Power to acquire 40% equity stake in a new SPV with Druk Green Power Corporation.
- Project to develop the 1125 MW Dorjilung Hydro Power Project in Bhutan.
- Estimated project cost stands at around ₹13,100 crore.
- Investment value for Tata Power pegged at ₹1,572 crore in cash.
- First tranche expected to conclude within six months.
- No Indian government approvals required for the acquisition.
- SPV to become Tata Power’s associate company post-acquisition.
Tata Power Company Limited has announced plans to acquire a 40% equity stake in a Special Purpose Vehicle (SPV) formed in partnership with Druk Green Power Corporation Limited (DGPC). The SPV will be established for the development of the 1125 MW Dorjilung Hydro Power Project in Bhutan, a significant renewable energy initiative with an estimated project cost of approximately ₹13,100 crore.
The acquisition, valued at around ₹1,572 crore, will be executed in one or more tranches through a cash transaction. The first tranche is expected to be completed within six months, subject to the terms outlined in the forthcoming Shareholders Agreement between Tata Power and DGPC.
According to the company, the project aligns with Tata Power’s strategic goal of accelerating its clean and green energy transition. Once the transaction is completed, the SPV will become an associate company of Tata Power, thereby categorised as a related party under regulatory norms.
The company further clarified that no Indian governmental or regulatory approvals are required for this acquisition, as the project is based in Bhutan. Details regarding the SPV, including its incorporation and financial data, will be disclosed upon establishment.