Tata Power acquires 40% stake in Bhutan’s Dorjilung hydro project

Tata Power has completed the first tranche of its strategic investment in Dorjilung Hydro Power Limited (DHPL), acquiring a 40% equity stake in the company formed to develop the 1,125 MW Dorjilung Hydro Power Project in Bhutan. The investment of Rs 50 crore represents the initial phase of a total planned investment of about Rs 1,572 crore.

In a regulatory filing to the stock exchanges, Tata Power stated that it has subscribed to 50,00,000 equity shares of Rs 100 each in DHPL. These shares represent 40% of the issued and paid-up equity capital of the company. The acquisition was completed through a cash consideration.

The investment follows a shareholders’ agreement signed between Tata Power and Druk Green Power Corporation Limited (DGPC) on November 21, 2025, which sets out the framework for the partnership. The remaining investment tranches are scheduled to be made over a period of six years.

DHPL was incorporated on December 8, 2025, to develop the 1,125 MW Dorjilung Hydro Power Project in Bhutan. The project has an estimated cost of about Rs 13,100 crore and forms part of Tata Power’s strategy to expand its clean energy portfolio.

Following the transaction, DHPL will become an associate company of Tata Power and therefore a related party. The company stated that the current acquisition does not qualify as a related party transaction. No approvals from Indian governmental or regulatory authorities are required for the acquisition.

As a newly incorporated entity, DHPL currently reports nil turnover, nil profit after tax, and nil net worth. The company’s operations are based in Bhutan.