Tata Power Company Ltd has announced plans to acquire a 40% equity stake in a new special purpose vehicle (SPV) being established to develop the 1,125 MW Dorjilung Hydropower Project in Bhutan, marking a major step in its regional renewable energy expansion strategy.
The investment, valued at approximately ₹1,572 crore, underscores Tata Power’s commitment to strengthening its footprint in clean energy generation across South Asia.
Investment and Structure Details
As per the company’s regulatory filing on November 11, 2025, Tata Power will acquire the 40% stake in one or more tranches, with a total cash consideration of about ₹1,572 crore.
The yet-to-be-incorporated SPV will be a joint venture between Tata Power and Druk Green Power Corporation Ltd (DGPC) — Bhutan’s state-owned hydropower enterprise. The total project cost for the Dorjilung Hydropower Project is estimated at ₹13,100 crore.
Tata Power noted that the first phase of the transaction is expected to be completed within six months, subject to the terms and conditions of the shareholders’ agreement.
Strategic Significance of the Project
The Dorjilung project is a significant addition to Tata Power’s growing renewable and hydropower portfolio, aligning with its long-term goal of achieving clean and sustainable energy growth.
Beyond its business value, the initiative is expected to enhance cross-border energy cooperation between India and Bhutan, two nations that have historically partnered in hydropower development. The project supports both countries’ energy security and decarbonisation objectives under their climate commitments.
Summary
Tata Power’s planned ₹1,572 crore investment in Bhutan’s 1,125 MW Dorjilung Hydropower Project marks a strategic expansion in regional renewable energy collaboration. The project not only bolsters Tata Power’s sustainable energy portfolio but also deepens India–Bhutan ties in hydropower generation — a sector crucial to South Asia’s transition toward cleaner, greener energy.
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