Tata Power completes first tranche of Bhutan hydro investment

Tata Power has completed the initial phase of its planned investment in Bhutan’s Khorlochhu Hydro Power Limited (KHPL) by acquiring a 40 per cent equity stake for Rs 1.2 billion, according to the company’s regulatory filing dated July 24.

The investment involves the purchase of 12 million equity shares at Rs 100 each. This marks the first tranche of a total of Rs 8.3 billion strategic investment that will be executed over five years. The acquisition follows a Share Purchase Agreement signed between Tata Power, KHPL, and its existing shareholder.

KHPL is developing a 600 MW hydropower project in Bhutan, with a total estimated cost of Rs 69 billion. As per Tata Power’s disclosure, construction began in December 2024, and commissioning is scheduled for September 2029. The project is being developed through a public-private partnership with Bhutan’s Druk Green Power Corporation (DGPC).

Tata Power and DGPC formalised their collaboration in August 2024. In a later announcement made in November, both parties committed to jointly building a 5,000 MW clean energy portfolio in Bhutan.

KHPL, incorporated in June 2015, had a reported net worth of Nu. 6,080 million (Rs 608 crore) as of December 2024, with no turnover or profit over the past three years. Following this investment, KHPL will become an associate company of Tata Power.