Tata Power to acquire 40% stake in Bhutan’s KHPL for Rs 8.3 billion

Tata Power has announced that it will acquire a 40% stake in Khorlochhu Hydro Power Limited (KHPL) for Rs 8.3 billion to develop a 600 MW hydro project in Bhutan. The company is partnering with Druk Green Power Corporation for this project, which has an estimated total cost of Rs 69 billion.

In an exchange filing, Tata Power stated that the acquisition would occur in multiple tranches, with the first tranche payment expected within six months. Praveer Sinha, CEO and Managing Director, confirmed that all necessary approvals have been received and that the power generated will be used both in Bhutan and India. He added that Tata Power’s planned capital expenditure for this financial year is Rs 200 billion, with a focus on clean energy technologies, including pumped hydro projects, hydropower in Bhutan, and potential development of Small Modular Nuclear Reactors (SMRs) as government policies evolve.