Tata Power Advances Clean Energy Drive with 40% Stake Acquisition in Bhutan Hydro Project

The Board of Directors of Tata Power Company Limited has approved a significant acquisition aimed at bolstering its green energy ambitions. Tata Power has entered into a shareholders agreement with Druk Green Power Corporation Limited (DGPC) to acquire a 40% equity stake in an SPV that will develop the Dorjilung Hydro Power Project in Bhutan. This power project, slated at a capacity of 1125 MW with an estimated project cost of ₹13,100 crore, underscores Tata Power’s focus on accelerating clean energy transition.

The SPV is yet to be incorporated, and further updates will follow after incorporation. This acquisition does not constitute a related party transaction, but post-acquisition, the SPV will be an associate company of Tata Power.

The acquisition will be completed in one or more tranches, with the first tranche expected within six months. The consideration for this acquisition is cash-based, totaling approximately ₹1,572 crore for the 40% stake. Notably, no Indian governmental or regulatory approvals are required for this transaction.

This project positions Tata Power prominently in the power sector, extending its footprint beyond India and reinforcing its commitment to sustainable energy development.

Key Highlights:

- Tata Power to acquire 40% equity stake in a new SPV for Dorjilung Hydro Power Project, Bhutan.
- Project capacity: 1125 MW, estimated cost around ₹13,100 crore.
- Acquisition via cash consideration of approx. ₹1,572 crore.
- SPV to become an associate company post-acquisition; not a related party transaction.
- No Indian regulatory approvals required.
- Completion of the first tranche expected within 6 months.
- Agreement executed with Druk Green Power Corporation Limited.
- Acquisition aligns with Tata Power’s clean and green energy objectives.

Source: Company Disclosure to the Stock Exchanges