India’s largest private sector power firm, Tata Power, has acquired 26 per cent stake in a hydroelectric power project in Bhutan for an undisclosed sum.
The company has picked stake in the 114 mw Dagachhu hydropower project, which is being developed by the Bhutan government.
The project would be executed through a special purpose vehicle Dagachhu Hydro Power Corporation, Tata Power said in a statement on Monday.
“This partnership consists of equity participation and off-take of power by the company and Tata Power Trading Company,” said Prasad Menon, managing director, Tata Power.
As per the understanding, Tata Power Trading, the power-trading subsidiary of Tata Power would buy the entire power generated from the project for a period of 25 years.
The power is expected to be evacuated through the Tala Transmission Link, a joint venture between Tata Power and the POwer Grid into India’s Eastern Grid.