Tata Power Completes Second Tranche of ₹830 Crore Investment in Bhutan Hydro Project

Tata Power has invested ₹60 crore in the second tranche of its planned ₹830 crore investment in Khorlochhu Hydro Power Limited (KHPL). Reportedly, the company is acquiring a 40% equity stake in KHPL, which is developing the 600 MW Khorlochhu Hydropower Project in Bhutan.

Second Tranche Completed

In this tranche, Tata Power subscribed to 60 lakh equity shares of ₹100 each, representing 40% of KHPL’s issued and paid-up equity capital. The company stated that the second tranche is now complete, and the remaining investment will be made over the next five years.

Project Overview

The Khorlochhu Hydropower Project in Bhutan is being developed at an estimated cost of around ₹6,900 crore. The project is focused on generating hydropower and forms part of Bhutan’s efforts to build large-scale energy infrastructure in partnership with foreign investors.

Background & Regulatory Details

This investment follows earlier announcements made by Tata Power in August 2024, October 2024, and July 2025, regarding the proposed acquisition. The transaction is being carried out under a share purchase agreement signed between Tata Power, KHPL, and KHPL’s existing shareholders. The company confirmed that none of its promoter or group companies has any interest in the transaction, and that it has been executed on an arm’s length basis.

About KHPL

Khorlochhu Hydro Power Limited was incorporated on June 12, 2015. It operates in Bhutan’s power sector and is currently in the project development stage. As of December 31, 2024, KHPL reported a net worth of Nu. 6,080 million (approximately ₹608 crore), with no turnover or profit, as the project is still under construction.

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Tata Power Share Price Performance 

As of November 10, 2025, 9:48 AM, Tata Power share price was trading at ₹394.55, a 0.34% increase from the previous closing price.

Conclusion

The remaining tranches of Tata Power’s investment in KHPL will be completed within a five-year period. The acquisition is part of a multi-phase plan outlined in previous regulatory disclosures to stock exchanges.

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