December 02, 2008

TATA Power to take 26% stake in Dagachhu Hydro project in Bhutan

With reference to earlier announcement dated on July 21st 2008 titled "TATA Power takes 26% equity stake in 114 MW Dagachhu Hydro Electric Power Project being developed by The Royal Government of Bhutan", wherein was inadvertently mentioned that the Company had acquired 26% equity stake in 114 MW Hydro Electric Power Project being developed by the Royal Government of Bhutan, TATA Power Company Limited has now informed BSE that the Company has agreed to acquire the said stake.

TATA Power said that "TATA Power agrees to take 26% equity stake in 114 MW Dagachhu Hydro Electric Power Project being developed by The Royal Government of Bhutan."

Mr Prasad R Menon MD of TATA Power said that "This partnership consists of equity participation and off take of power by the company and TATA Power Trading Company."

As part of the partnership, TATA Power would acquire 26% stake in the project and TATA Power Trading has negotiated to purchase all the power generated from the project. TATA Power Trading will off take power from the project for a period of 25 years and the power will be delivered at India to Bhutan border Cochin Shipyard gets.