Tata Power share price jumps up to 5% in early trade; here is why

News reports said the imported coal-fired plant has remained shut for the past six months after the government last year withdrew the emergency clause that compensated companies for generating power using expensive imported coal.

On March 9, 2026, Tata Power intimated to stock exchanges regarding the proposed acquisition of a 40% equity stake in Dorjilung Hydro Power Limited ('DHPL'), a special purpose vehicle ('SPV'), in one or more tranches.

The company said that the shareholders' agreement has been executed between Tata Power and Druk Green Power Corporation Limited (‘DGPC’).

"We wish to inform you of further development, i.e., the first tranche of the strategic investment. The company has invested ₹50 crore in the first tranche out of a total investment of approx. ₹1,572 crore and subscribed to 50,00,000 equity shares of ₹100 each, equivalent to 40% of the issued and paid-up equity capital of DHPL."

Hydro power scheme approved: Tata Power likely to benefit

The Union Cabinet on Wednesday approved a small hydro power development scheme with an outlay of ₹2,585 crore to boost the development of 1,500 MW of renewable capacity. According to analysts, Tata Power Company is expected to benefit from it.

"Small hydro power development scheme approved by the Cabinet with an outlay of ₹2,585 crore," Union Minister Ashwini Vaishnaw told reporters after the meeting of the Union Cabinet in the national capital.

The minister stated that this is an important decision from an environmental perspective for the country. The projects will be developed as run-of-river projects without constructing dams and displacing people.