Tata Power on Tuesday said it will invest Rs 1,572 crore for acquiring 40% equity stake in a special purpose vehicle that will set up 1,125 MW Dorjilung hydro power project in Bhutan at an investment of Rs 13,100 crore.

The acquisition will be done in one or more tranches for which a shareholders agreement would be executed between the company and Druk Green Power Corporation Ltd. (DGPC) in Bhutan, a regulatory filing said.

According to the filing, the SPV is yet to be incorporated. The acquisition will not fall under the related party transaction.

However, it stated that post-acquisition, the SPV will become an associate company of Tata Power and consequently a related party.