Shares of Tata Power Company Ltd fell 1% after touching a day’s high of Rs 391.50 on 24th November. This happened even as the company announced that it has signed commercial agreements with Druk Green Power Corporation Ltd (DGPC) for the development of the 1,125 MW Dorjilung hydroelectric power project in Bhutan. The project will be executed through a special-purpose vehicle (SPV). In this SPV, DGPC will hold a 60% equity stake and Tata Power will hold a 40% stake.

The run-of-the-river project will have six units of 187.5 MW each. It is being built on the Kurichhu River in Mongar, Bhutan. With six-hour pondage for peak generation, it aims to add clean and reliable hydropower capacity to the region.

Tata Power has committed around Rs 1,572 crore in equity. This will be infused in stages as per the agreed structure. The total project cost is Rs 13,100 crore, making Dorjilung Bhutan’s second-largest hydropower project. It is also the biggest hydro PPP in the country.

About 80% of the electricity generated will be supplied to India. This will also help Bhutan strengthen its energy security. The project is expected to be commissioned by September 2031. Once operational, the SPV will become an associate company of Tata Power, expanding its presence in the Himalayan renewable energy corridor.

The project is expected to boost regional clean energy availability significantly. It is supported by the World Bank, marking a key milestone in cross-border green financing.

Dorjilung also builds on earlier projects—the Dagachhu hydropower project, where Tata Power holds 26%, and the under-construction 600 MW Khorlochhu project, where it has 40%. Together, these efforts support the broader plan of Tata Power and DGPC to jointly develop 5,000 MW of clean energy capacity in Bhutan. This is aligned with Bhutan’s national goals and India’s net-zero targets.

At 1:02 PM, shares of Tata Power were trading 0.80% lower at Rs 383.90 on NSE.

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