Tata Power announced that it has acquired a 40% equity stake in Bhutan-based Khorlochhu Hydro Power Limited (KHPL) for approximately Rs 830 crore. This strategic acquisition was formalized through a Share Purchase Agreement between Tata Power, the existing shareholders of KHPL, and KHPL itself, as reported in the company’s exchange filing.
Board Approval and Acquisition Details
On August 6, Tata Power’s Board of Directors approved the acquisition, allowing the company to secure a 40% stake in KHPL in one or more tranches. The total investment for this equity stake stands at around Rs 830 crore, reinforcing Tata Power’s commitment to expanding its renewable energy footprint in neighboring countries.
Partnership with Druk Green Power Company
Tata Power has also confirmed a partnership with Druk Green Power Company to co-develop the hydroelectric project in Bhutan. The entire project is estimated to cost Rs 6,900 crore, with the collaboration expected to significantly contribute to Tata Power’s renewable energy portfolio while strengthening energy ties with Bhutan.
Strategic Impact of the Acquisition
This acquisition aligns with Tata Power’s long-term vision of expanding its renewable energy assets across the region. By investing in the Khorlochhu Hydro Power project, Tata Power will not only bolster its clean energy capacity but also support sustainable energy initiatives in Bhutan.
