Tata Power Company Limited has completed the first tranche of its strategic investment in Dorjilung Hydro Power Limited (DHPL), investing ₹50 crore to acquire a 40% equity stake in the hydro power project being developed in Bhutan.
The investment follows the company’s earlier announcement on November 21, 2025, regarding the proposed acquisition of a 40% stake in DHPL, a Special Purpose Vehicle (SPV) established for the development of the 1125 MW Dorjilung Hydro Power Project. The initiative is being undertaken in partnership with Druk Green Power Corporation Limited (DGPC), with whom Tata Power has executed a shareholders’ agreement.
As part of the first tranche, Tata Power has subscribed to 50,00,000 equity shares of ₹100 each in DHPL, representing 40% of the issued and paid-up equity share capital. The total planned investment by Tata Power in the project is approximately ₹1,572 crore.
The Dorjilung Hydro Power Project, with an estimated project cost of around ₹13,100 crore, is expected to play a significant role in advancing Tata Power’s strategy to accelerate its transition toward clean and green energy sources.
According to the company, the remaining investment tranches will be completed over a period of six years. The acquisition is not classified as a related-party transaction at present; however, DHPL will become an associate company of Tata Power after the investment.
The company further clarified that no Indian governmental or regulatory approvals are required for the acquisition, and the transaction is being carried out entirely through cash consideration.
Dorjilung Hydro Power Limited was incorporated on December 8, 2025, and currently has no turnover, profit after tax, or operational net worth, as the project is still in the development stage. The entity will operate in the power sector with a focus on hydroelectric generation in Bhutan.
