Tata Power completes second tranche of investment in Bhutan hydropower project

Tata Power Company Limited has completed the second tranche of its planned investment in Khorlochhu Hydro Power Limited (KHPL), securing a 40% equity stake in the company developing a 600 MW hydropower project in Bhutan. The latest infusion of Rs 60 crore forms part of a broader acquisition worth about Rs 830 crore.

In a filing with the stock exchanges on November 7, 2025, Tata Power stated that it subscribed to 60 lakh equity shares of KHPL under this tranche. The investment follows a Share Purchase Agreement first announced in August 2024, with the remaining tranches expected to be completed over the next five years.

The acquisition aims to advance the 600 MW Khorlochhu Hydropower Project, which carries an estimated total cost of Rs 6,900 crore. Tata Power said the move supports its strategy to expand its clean and renewable energy portfolio. 

With this tranche, KHPL has become an associate company of Tata Power. The company also confirmed that no Indian government approvals were required and that the deal was conducted on an arm’s length basis.