New Delhi: Tata Power Company Ltd has announced plans to invest Rs 1,572 crore for a 40 percent equity stake in a special purpose vehicle (SPV) being set up jointly with Druk Green Power Corporation Ltd (DGPC) to develop the 1,125 MW Dorjilung Hydropower Project in Bhutan, the company said in a regulatory filing to stock exchanges on Tuesday.
Follow Energy Watch on X
The SPV, which is yet to be incorporated, will oversee the development of the Rs 13,100-crore project, Tata Power said. The investment will be made in one or more tranches through cash consideration, with the first tranche expected to be completed within six months, subject to terms agreed in the shareholders’ agreement.
The filing added that no Indian governmental or regulatory approvals are required for the acquisition.
The Dorjilung project will be located on the Kurichhu River in eastern Bhutan and is being developed under the India-Bhutan hydropower cooperation framework. According to Tata Power’s investor presentation, the run-of-river project will have an installed capacity of 1,125 MW, with a design energy generation of over 4,800 GWh per annum.
The project is expected to take about five years to construct and will contribute significantly to Bhutan’s exportable clean power capacity to India. Power will be evacuated through high-voltage transmission lines to the Indian grid via Assam.
Tata Power said the acquisition will “support the company to accelerate its clean and green energy transition,” further diversifying its hydropower portfolio and strengthening its regional partnerships in South Asia. The company already operates the 126 MW Dagachhu Hydropower Project in Bhutan in partnership with DGPC and has additional projects, including the 600 MW Khorlochhu and 740 MW Gongri hydro schemes, under various stages of development.
Together, these ventures underscore Tata Power’s long-term commitment to cross-border clean energy collaboration and low-carbon generation.
The Dorjilung project is part of a series of new-generation hydro ventures aimed at deepening energy ties between India and Bhutan. Hydropower exports already form a significant part of Bhutan’s economy, while India benefits from reliable renewable imports that help balance its grid. The project is also expected to create local employment in Bhutan and enhance technology and capacity exchange between the two countries.
Follow Energy Watch on LinkedIN
With over 26 GW of operational and under-construction capacity, Tata Power has been expanding aggressively into renewables, with more than 60 percent of its portfolio now green. The company has set a target to achieve 30 GW of clean energy capacity by 2030, supported by hydro, solar, wind, hybrid and energy storage projects in India and overseas.
The Dorjilung project adds a major international milestone to Tata Power’s renewable portfolio and strengthens its presence in the Himalayan region’s emerging hydropower ecosystem.