Tata Power Acquires 40% Stake in Bhutan Hydro Project for ₹830 Crore

30 Oct 2024 , 11:09 PM

Tata Power has acquired a 40% equity stake in Bhutan-based Khorlochhu Hydro Power Limited (KHPL) for an investment of ₹830 Crore. A Share Purchase Agreement was signed between Tata Power, KHPL, and its existing shareholder to finalize the transaction.

Tata Power’s Board of Directors approved the acquisition on August 6, allowing the stake to be acquired in one or more phases. The acquisition aligns with Tata Power’s strategy to expand its presence in the hydropower sector in South Asia.

Tata Power has partnered with Bhutan’s Druk Green Power Company to undertake the hydroelectric project. The hydro project’s total development cost is estimated at ₹6,900 Crore. This investment strengthens Tata Power’s commitment to renewable energy and clean energy development in the region.

Tata Power’s involvement in the KHPL project aims to boost hydroelectric capacity and supports Bhutan’s sustainable energy goals. The acquisition aligns with Tata Power’s regional growth strategy and commitment to expanding renewable energy sources.