Tata Power Company Ltd has signed a Shareholders’ Agreement with Druk Green Power Corporation (DGPC) to acquire a 40% equity stake in a Special Purpose Vehicle (SPV) that will develop the 1,125 MW Dorjilung Hydropower Project in Bhutan. The investment is subject to regulatory approvals.
Key Investment Details
As per Tata Power’s regulatory filing:
- The company will invest ₹1,572 crore in phases to secure the 40% stake in the SPV.
- The total project cost is estimated at ₹13,100 crore.
- The latest agreement follows Tata Power’s earlier disclosure dated November 11, 2025.
- The first tranche of the investment is expected to be completed within six months.
Strategic Importance
The SPV is yet to be incorporated, and no Indian government approvals are required for the acquisition. Once formed, the SPV will qualify as an associate company of Tata Power.
The Dorjilung hydropower project represents a major push in Tata Power’s clean energy portfolio and strengthens regional energy cooperation with Bhutan. The company said the move aligns with its long-term strategy to expand renewable generation—especially in the hydroelectric segment.
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