Days after Ratan Tata’s death, big move by Tata Power, acquires 40% stake in Bhutan's Khorlochhu hydro project for Rs...

Tata Power Company Ltd announced on Monday its acquisition of a 40% stake in Bhutan-based Khorlochhu Hydro Power Ltd (KHPL), marking a major step in expanding its renewable energy portfolio. This acquisition aligns with Tata Power’s commitment to sustainable energy and aims to support its transition toward clean power.

According to reports, the transaction, valued at around Rs 830 crore, will be completed in stages, with the first tranche expected by March 31, 2025, subject to regulatory and contractual conditions. Further investments are planned over the next five years to solidify the company’s stake and influence within the project.

With this acquisition, Tata Power enters the 600 MW Khorlochhu Hydropower Project in Bhutan, valued at an estimated Rs 6,900 crore. The project is a significant development in Tata Power’s strategy to boost its renewable energy footprint. By partnering with KHPL, Tata Power will gain a foothold in the hydropower sector of Bhutan, a region known for its rich hydropower resources.

Upon completing the acquisition, KHPL will become an associate company of Tata Power, further strengthening Tata Power’s green energy initiatives. However, the initial investment will not involve any related party transactions since Tata Power and KHPL maintain independent shareholder interests.