Tata Power buys 26 per cent stake in Bhutan power project
21 July 2008
Mumbai: Tata Power Co Ltd has acquired a 26 per cent stake in Druk Green Power Corporation Ltd (DGPC) - the 114 MW run-of-the-river Dagachhu hydroelectric power project - being developed by the Bhutan government.
The project will be executed through a special purpose vehicle, Dagachhu Hydro Power Corp Ltd (DHPC), it said.
''We are happy to work with the Royal Government of Bhutan on the Dagachhu Hydro Electric Power project. This partnership consists of equity participation and offtake of power by the company and Tata Power Trading Company Ltd respectively,'' said Prasad Menon, managing director of Tata Power.
Tata Power Trading has agreed to purchase all the power generated from the project and Tata Power Trading will offtake power from the project for a period of 25 years. The power will be delivered at India-Bhutan Border.
Tata Power is an amalgamated entity of the two earlier power projects - Tata Hydroelectric Power Supply Company (set up in 1911) and the Andhra Valley Power Supply Company (1916).
It is one of India's largest energy utilities, providing services in power generation, distribution and transmission; oil and gas; and broadband and communications.
Tata Power has big overseas projects in a number of countries, including the UAE, Malaysia, Saudi Arabia, Kuwait and Algeria. It has also undertaken projects in power plant/utility operations and management in Saudi Arabia, Liberia, Iran, Sierra Leone and Algeria.
TPL owns, operates and maintains a thermal and hydroelectric power plants. The hydroelectric plants are in Khopoli, Bhivpuri and Bhira (all in Maharashtra), and the thermal power plants are in Trombay (Maharashtra), Wadi and Belgaum (Karnataka), and Jojobera (Jharkhand).