In a move to strengthen its renewable energy portfolio, Tata Power Company Ltd has confirmed its plan to acquire a 40 per cent stake in Bhutan-based Khorlochhu Hydro Power Ltd (KHPL). This acquisition, valued at approximately Rs 830 crore, will be phased, with the first tranche anticipated by the end of March 2025, pending regulatory clearances and contractual obligations.
This step signifies Tata Power’s commitment to expanding its green energy footprint as it joins Bhutan’s 600 MW Khorlochhu Hydropower Project. The project, estimated at a value of around Rs 6,900 crore, is expected to offer Tata Power a strategic position within Bhutan’s hydropower-rich sector, known for its sustainable energy resources.
Through this partnership, Tata Power will bring KHPL into its fold as an associate company, reinforcing its objectives toward sustainable and clean energy. Importantly, the acquisition will proceed independently, without involving any related party transactions, as both Tata Power and KHPL operate under distinct shareholder structures. This acquisition underscores Tata Power’s dedication to boosting its clean power resources, with additional investments set to further consolidate its influence within the project over the next five years.