TATA Power has acquired Druk Green Power Corporation Limited (DGPC), a subsidiary of Druk Holding and Investments Limited, for an undisclosed amount. This corporate acquisition sees TATA Power taking ownership of DGPC's extensive hydropower assets and operations in Bhutan, marking a significant strategic move for the Indian power major into the region's renewable energy sector.
Druk Green Power Corporation Limited is an ISO certified company responsible for operating and maintaining Bhutan's key hydropower assets. Its portfolio includes the Basochhu, Chhukha, Kurichhu, Mangdechhu, and Tala hydropower plants, along with embedded generation facilities. With Bhutan's current hydropower installed capacity at 2,335 MW, DGPC plays a crucial role, exporting approximately 70% of its generated energy to India. Hydropower revenues contribute about 25% to Bhutan's national exchequer, significantly offsetting the balance of payments with India, and account for approximately 7.5% of the country’s gross domestic product.
The acquisition is strategically aligned with TATA Power's objectives to expand its clean energy footprint and leverage established operational expertise. DGPC has diversified its business into hydropower investigation, design, engineering, construction, automation, and consultancy services, supported by a dedicated team of professionals. TATA Power's integration of DGPC is expected to create synergies by combining its resources and market reach with DGPC's specialized capabilities and operational base, enhancing efficiency and accelerating growth in the hydropower domain.
The combined entity is poised to strengthen its position in the renewable energy landscape, particularly in hydropower generation and related services. This acquisition is anticipated to contribute to enhanced energy security for the region, especially India, and continue to support Bhutan's economic development through sustainable power generation and operational excellence under TATA Power's ownership.