Tata Power share price is expected to remain in focus after financing agreements worth $515 million were signed for the 1,125 MW Dorjilung Hydroelectric Power Project in Bhutan, a major clean energy project in which Tata Power holds a strategic stake.
The Royal Government of Bhutan and the World Bank signed financing agreements totalling $515 million for the Dorjilung Hydroelectric Power Project.
The project is expected to become Bhutan’s largest hydropower development under a public-private partnership structure and contribute nearly one-third of the country’s total power generation capacity.
Located on the Kurichhu River in eastern Bhutan, the 1,125 MW project is expected to generate more than 4,500 GWh of clean electricity annually.
The project is aimed at reducing Bhutan’s seasonal energy shortages during winter while enabling surplus electricity exports to India during other periods of the year.
The project is being developed through Dorjilung Hydro Power Limited (DHPL), a special purpose vehicle jointly owned by Druk Green Power Corporation and Tata Power.
Under the structure, Druk Green Power Corporation holds a 60% stake, while Tata Power owns the remaining 40%.
The overall project cost is estimated at around $1.7 billion and has been structured through a public-private partnership model designed to reduce sovereign borrowing pressure.
The financing package includes concessional funding from the International Development Association (IDA), support from the International Bank for Reconstruction and Development (IBRD), and additional funding support from the International Finance Corporation (IFC).
The project is expected to strengthen clean energy cooperation between India and Bhutan while supporting regional energy security.
Officials stated that nearly 80% of the electricity generated annually will be supplied to India, helping meet rising peak demand while supporting Bhutan’s clean energy export ambitions.
Additionally, the hydropower project is projected to increase Bhutan’s GDP by 2.4% and contribute to lower regional carbon emissions.
As per the exchange filings, Praveer Sinha, CEO & Managing Director Tata Power said “We thank the Royal Government of Bhutan, the World Bank Group, and Druk Green Power Corporation for their partnership in advancing the 1,125 MW Dorjilung project.
The signing of $515 million in financing agreements marks a momentous milestone for a project that will contribute nearly one-third of Bhutan’s electricity generation.”
He further added,” This landmark project will strengthen regional energy security and deepen India–Bhutan clean energy cooperation.
With nearly 80% of its 4,500 GWh annual generation supplied to India, it will help meet rising peak demand especially in summer while enabling Bhutan to expand clean energy exports for shared economic benefit.”
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As of 05 May 2026, at 3:30 PM, Tata Power share price closed at ₹442.10 per share, reflecting a surge of 0.16% from the previous closing price.
The Dorjilung hydropower project marks a major regional clean energy initiative, strengthening Tata Power’s presence in cross-border renewable and hydroelectric infrastructure projects.
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Published on: May 6, 2026, 9:07 AM IST
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