Shares of Tata Power Company Ltd ended 1.5% lower on 12th November. This occurred even as the company announced plans to invest Rs 1,572 crore to acquire a 40% equity stake in a special purpose vehicle (SPV) for developing the 1,125 MW Dorjilung hydropower project in Bhutan. The total project cost is Rs 13,100 crore.

According to a regulatory filing, the special purpose vehicle (SPV) for the Dorjilung project is yet to be incorporated. The deal is not a related party transaction at this stage. Once completed, the SPV will become an associate company of Tata Power. The shareholders’ agreement states that the first tranche of the acquisition must be completed within six months.

Tata Power said the project will help accelerate its clean and green energy transition. The Khorlochhu project, linked to the same region, has already secured a Rs 4,829 crore loan from the Power Finance Corporation.

CEO and MD Praveer Sinha said Tata Power is well-positioned to expand, with 10 GW of clean capacity under construction. Additionally, the company has a 5 GW pipeline of hybrid and FDRE projects. He added that with proposed amendments to the Electricity Act, the company aims to expand its distribution network to 40 million consumers by 2030.

The Bhutan investment is part of Tata Power’s broader plan to strengthen its renewable portfolio through large-scale international projects. The agreement with Druk Green Power Corporation sets out the framework for this multi-phase investment.

At 3:30 PM, shares of Tata Power ended 1.59% lower at Rs 389.30 on NSE.

Unicorn Signals leverages advanced AI technology to provide you with powerful market predictions and actionable stock scans. Download the app today and 10x your trading & investing journey!