Clean energy push: Tata Power to buy 40% stake for Rs 1,572 crore in Bhutan hydro SPV; move to boost regional green footprint
According to a regulatory filing, the acquisition-to be carried out in one or more tranches – will be executed through a shareholders’ agreement between Tata Power and Bhutan’s Druk Green Power Corporation Ltd (DGPC).The SPV, which is yet to be incorporated, will set up the Rs 13,100 crore Dorjilung hydro project.
While the acquisition will not initially fall under a related-party transaction, Tata Power said that once completed, the SPV will become its associate company and therefore a related party.The project, once operational, will significantly strengthen Tata Power’s clean energy portfolio and reinforce its presence in the hydropower segment.
The first tranche of the acquisition is expected to be completed within six months.“The cost of acquisition is about Rs 1,572 crore for 40 per cent equity stake, payable in cash, in one or more tranches,” the company said.
