Tata Power Company Ltd has announced that it has acquired a 40% equity interest in Khorlochhu Hydro Power Ltd (KHPL) in Bhutan. The company’s Board of Directors proposed this acquisition, which will be executed in one or more tranches. A Share Purchase Agreement has been signed between Tata Power, existing shareholders of KHPL, and KHPL itself, as stated in a stock exchange filing.
The total value of the transaction is approximately ₹830 crore, with the first tranche expected to be finalized by March 31, 2025, subject to regulatory and contractual conditions. Additional investments are anticipated over the next five years.
This acquisition represents Tata Power’s entry into the Khorlochhu Hydropower Project, which has a capacity of 600 MW and is estimated to cost around ₹6,900 crore. It aligns with the company’s strategy to expand its renewable energy portfolio and transition towards cleaner energy sources.
Once finalized, KHPL will be categorized as an associate company of Tata Power, becoming part of the company’s growing green energy initiatives. At the outset, this acquisition will not involve any related party transactions, as Tata Power and KHPL currently have separate shareholder interests.
Tata Power Company Ltd., a subsidiary of Tata Group, is one of India’s largest integrated power companies, renowned for its expertise across the entire energy value chain, from generation and transmission to distribution and renewable energy.
With a diverse energy portfolio that includes thermal, hydro, solar, wind, and waste heat recovery, Tata Power has been a pioneer in advancing India’s clean energy transition. The company has an installed generation capacity of over 13 GW, with a significant portion dedicated to renewable energy sources, making it a leader in sustainable energy development.
The company also plays a crucial role in smart grid technologies, electric vehicle (EV) charging infrastructure, and distributed generation solutions, supporting the country’s transition to a greener, more resilient energy future.
Through its initiatives in energy efficiency, microgrid development, and solar rooftop installations, Tata Power is not only meeting the growing demands for power but also enhancing energy access and sustainability for communities across India.
