Tata Power and Druk Green to Develop 1,125 MW Dorjilung Hydropower in Bhutan

Tata Power Company Limited has executed a Shareholders’ Agreement with Druk Green Power Corporation Limited (DGPC) to acquire a 40% equity stake in a Special Purpose Vehicle (SPV), subject to regulatory approvals.  

The SPV will be created to develop the major Dorjilung Hydro Power Project in Bhutan, marking a key step in Tata Power’s clean energy expansion strategy. 

Key Development 

According to the regulatory filing, Tata Power will invest approximately ₹1,572 crore to acquire the 40% stake in the SPV, in one or more tranches, for the 1125 MW Dorjilung Hydro Power Project. The total project cost stands at around ₹13,100 crore.  

The agreement was executed following the company’s earlier intimation dated November 11, 2025. The first tranche of the transaction is expected to be completed within six months as per agreed terms.  

Strategic Intent & Insights 

The SPV has not yet been incorporated, and no Indian governmental approvals are required for the acquisition. Once executed, the SPV will become an associate company of Tata Power. The project aims to accelerate Tata Power’s clean and green energy transition in the hydroelectric sector.  

This aligns with its broader renewable energy strategy targeting regional energy collaboration, as highlighted in the disclosure submitted to both BSE and NSE.  

Read More: Tata Power to Boost Green Energy Additions 6 Fold in H2 FY26! 

Tata Power Share Price Performance  

As of November 21, 2025, Tata Power share price is closed at ₹386.90 per share, reflecting a decline of 0.31% from the previous closing price.  

Read More: Tata Digital Plans Significant Job Reductions at Neu Under New CEO! 

Conclusion 

This acquisition reflects Tata Power’s long-term commitment to expanding its renewable portfolio and strengthening international energy collaboration. With a sizeable investment and clear strategic direction, the 1125 MW Bhutan project could enhance both capacity and regional energy security once operational. The move also indicates Tata Power’s growing focus on hydroelectric opportunities beyond domestic borders.  

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.