Tata Power has completed the first tranche of its strategic investment in Dorjilung Hydro Power Limited, a special purpose vehicle developing a 1125 megawatt (MW) project in Bhutan, at an estimated total project cost of Rs 131 bn. The company invested an initial Rs 500 mn to acquire five million equity shares, representing 40 per cent of DHPL's issued capital. The remaining tranches will be completed over the next six years and are expected to be executed in line with project milestones, the company said in a stock exchange filing. The transaction strengthens the firm's cross-border investments in renewable infrastructure and aligns with its stated decarbonisation objectives. The total planned investment for the full acquisition of the project is approximately Rs 15.72 bn. No Indian governmental or regulatory approvals were required for this phase of the acquisition. On completion DHPL will become an associate company of Tata Power and thus a related party. The company clarified that the initial tranche did not require Indian governmental clearances at this stage. The Dorjilung project on the Kurichhu River is designed to have a capacity of 1125 MW and to generate over 4,500 GWh annually. It is slated for commissioning by September 2031 and forms a public-private partnership between DGPC of Bhutan, holding a 60 per cent stake, and Tata Power with a 40 per cent stake. The investment is positioned to strengthen cross-border clean energy cooperation and to expand Tata Power's presence in the Himalayan renewable energy corridor. The World Bank Group has approved a financing package of $815 mn to support development and to mobilise private investment. The project is expected to supply 80 per cent of its power to India, contributing to Bhutan's energy security and regional stability. Tata Power has said the investment is intended to accelerate its clean and green energy transition and to solidify its commitment to renewable capacity expansion.