Tata Power's Strategic Stake in Bhutan's Green Energy Future

Tata Power plans to invest Rs 1,572 crore to acquire a 40% equity stake in a special purpose vehicle for the development of the Dorjilung hydro power project in Bhutan. The project, valued at Rs 13,100 crore, aims to promote clean energy. An agreement with Druk Green Power Corporation will formalize the acquisition.

Tata Power announced on Tuesday its decision to invest Rs 1,572 crore for a 40% equity stake in a special purpose vehicle (SPV) set to launch the 1,125 MW Dorjilung hydro power project in Bhutan, with a total investment of Rs 13,100 crore.

This acquisition will occur in multiple tranches, governed by a shareholders agreement with Bhutan's Druk Green Power Corporation Ltd, as revealed in a regulatory filing. Notably, this SPV has yet to be incorporated.

Upon completion, the SPV will become Tata Power's associate company, facilitating the company's shift towards clean energy. The first tranche is expected within six months, with the acquisition totaling approximately Rs 1,572 crore, paid in cash.

(With inputs from agencies.)