Tata Power signs agreements to acquire 40% stake in Bhutan hydropower SPV; shares edge higher
Tata Power will acquire a 40 per cent stake in a special purpose vehicle (SPV) for an equity investment of about Rs 1,572 crore, to be infused in phases.
- Nov 24, 2025,
- Updated Nov 24, 2025 10:17 AM IST
Shares of Tata Power Company Ltd were last seen trading 0.37 per cent higher at Rs 388.40 in Monday's session after the firm announced key commercial agreements with Bhutan's Druk Green Power Corporation (DGPC) for the 1,125 MW Dorjilung Hydroelectric Power Project.
Under the agreements, Tata Power will acquire a 40 per cent stake in a special purpose vehicle (SPV) for an equity investment of about Rs 1,572 crore, to be infused in phases. The Dorjilung project, with a total outlay of Rs 13,100 crore, will be Bhutan's second-largest hydropower project and the largest to be developed under the public-private partnership (PPP) model in the country.
The Run-of-the-River project, comprising six units of 187.5 MW each, is being built on the Kurichhu River in Bhutan's Mongar district. It has been designed with a six-hour pondage to support peaking requirements.
Once completed, the SPV will function as a subsidiary of Tata Power, bolstering the company's presence in the Himalayan renewable energy corridor. The project is expected to be commissioned by September 2031. As per the arrangement, 80 per cent of the power generated will be supplied to India. The initiative is also supported by the World Bank.
The concession agreement was signed in Thimphu by Tata Power CEO and MD Praveer Sinha and DGPC Managing Director Dasho Chhewang Rinzin, in the presence of Bhutan Prime Minister Lyonchhen Tshering Tobgay.
Sinha said the project aligns with Bhutan's domestic energy goals while enabling the export of surplus clean power to India and further strengthens Tata Power's hydropower portfolio.
Shares of Tata Power Company Ltd were last seen trading 0.37 per cent higher at Rs 388.40 in Monday's session after the firm announced key commercial agreements with Bhutan's Druk Green Power Corporation (DGPC) for the 1,125 MW Dorjilung Hydroelectric Power Project.
Under the agreements, Tata Power will acquire a 40 per cent stake in a special purpose vehicle (SPV) for an equity investment of about Rs 1,572 crore, to be infused in phases. The Dorjilung project, with a total outlay of Rs 13,100 crore, will be Bhutan's second-largest hydropower project and the largest to be developed under the public-private partnership (PPP) model in the country.
The Run-of-the-River project, comprising six units of 187.5 MW each, is being built on the Kurichhu River in Bhutan's Mongar district. It has been designed with a six-hour pondage to support peaking requirements.
Once completed, the SPV will function as a subsidiary of Tata Power, bolstering the company's presence in the Himalayan renewable energy corridor. The project is expected to be commissioned by September 2031. As per the arrangement, 80 per cent of the power generated will be supplied to India. The initiative is also supported by the World Bank.
The concession agreement was signed in Thimphu by Tata Power CEO and MD Praveer Sinha and DGPC Managing Director Dasho Chhewang Rinzin, in the presence of Bhutan Prime Minister Lyonchhen Tshering Tobgay.
Sinha said the project aligns with Bhutan's domestic energy goals while enabling the export of surplus clean power to India and further strengthens Tata Power's hydropower portfolio.