Mumbai: Tata Power has invested Rs 120 crore in the first tranche of its planned strategic investment in Khorlochhu Hydro Power Limited (KHPL), acquiring a 40 percent equity stake in the Bhutan-based hydropower company, the company disclosed in a regulatory filing on Thursday. The investment involved the subscription of 1.2 crore equity shares of Rs 100 each in KHPL. Tata Power’s total planned investment in KHPL stands at approximately Rs 830 crore, which will be made in multiple tranches over five years.
The acquisition is aimed at supporting the development of the 600 MW Khorlochhu Hydropower Project in Bhutan, a key component of Tata Power’s strategy to expand its clean energy portfolio. The total cost of the project is estimated at Rs 6,900 crore.
The investment aligns with Tata Power’s broader clean and green energy transition roadmap. Once the transaction is completed in full, KHPL will become an associate company of Tata Power and consequently a related party, though the current transaction does not fall under related party norms.
Khorlochhu Hydro Power Limited was incorporated in June 2015 in Bhutan. The company has had no revenue or profit in the past three years and reported a net worth of Nu. 6,080 million (approximately ₹608 crore) as of December 31, 2024.
No Indian regulatory or government approvals were required for the acquisition, Tata Power said. The entire consideration is being made in cash. The acquisition marks Tata Power’s growing focus on cross-border energy cooperation and hydropower expansion in the Himalayas.