Tata Power buys 26% in Bhutan hydro project

Tata Power, with a generation capacity of 2,300 mw, has acquired 26% stake in 114 mw hydro-power project in Bhutan.

July 22, 2008 23:30 IST

Tata Power, with a generation capacity of 2,300 mw, has acquired 26% stake in 114 mw hydro-power project in Bhutan. The company will deliver the generated power at the India-Bhutan border. Tata Power has bought 26% stake in the project, while its trading armTata Power trading has negotiated to purchase all the power generated from the project.

?Tata Power Trading will off-take power from the project for a period of 2 5 years and the power will be delivered at India-Bhutan border,? the release said.

Tata Power has entered into a partnership with the Royal Government of Bhutan through Druk Green Power Corp (DGPC) for developing the said project. The project would be executed by the Special Purpose Vehicle Dagachhu Hydro Power Corporation. However, the company has not divulged financial details and the terms of the partnership.

?This partnership consists of equity participation and off-take of power by the company and Tata Power Trading Company respectively,? Tata Power Managing Director Prasad Menon said. The power is expected to be evacuated through the Tala Transmission Link into India?s Eastern Region Grid.

Tata Power stock on BSE on Monday opened at Rs 1,024.10 and closed at Rs 1,043.65.

This article was first uploaded on July twenty-two, twenty eight, at thirty minutes past eleven in the night.