By IANS,
New Delhi : Tata Power, India’s largest private power utility, announced Monday it will develop a hydro-power project in Bhutan in partnership with the Bhutanese government, and purchase the entire power generated.
In a regulatory statement, Tata Power said it has acquired 26 percent in a 114 megawatt hydro-electric power plant over river Dagacchu, through the Bhutan government-owned Druk Green Power Corp Ltd (DGPC).
“This partnership consists of equity participation and off-take of power by the company and Tata Power Trading Co Ltd, respectively,” Tata Power managing director Prasad Menon said in the statement released in Mumbai.
Under this “strategic partnership”, Tata Power Trading Co will purchase all the power from the project for a period of 25 years.
The power will be delivered through the Tala transmission line to the India-Bhutan border, from where it will be subsumed into the Eastern Region Grid.
Tata Power, which has an installed generation capacity of over 2,300 megawatt, is already present in Bhutan, in a joint partnership with the public sector Power Grid Corp to transmit power in Tala hydro-power project from Bhutan to Delhi.