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Tata Power Secures 40% Stake in Bhutan Hydro Project with ₹120 Crore Investment

Written by: Team Angel OneUpdated on: 25 Jul 2025, 7:19 pm IST
Tata Power completes first tranche of investment in Bhutan’s 600 MW Khorlochhu Hydro Project, acquiring a 40% stake worth ₹120 crore.
Tata Power Secures 40% Stake in Bhutan Hydro Project with ₹120 Crore Investment
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Tata Power has taken a significant step in advancing its green energy agenda by acquiring a 40% equity stake in Bhutan-based Khorlochhu Hydro Power Limited (KHPL). The strategic investment marks the company’s entry into a large-scale international hydroelectric venture.

Key Investment Details 

The company has invested ₹120 crore in the first tranche of its planned ₹830 crore commitment and subscribed to 1.2 crore equity shares priced at ₹100 each. With this acquisition, Tata Power now holds 40% of KHPL’s equity capital. 

This development follows the signing of a Share Purchase Agreement between Tata Power, KHPL, and its existing shareholders. Over the next 5 years, further tranches of investment are expected to be completed as part of the broader strategic roadmap.

Clean Energy Push and Project Overview

KHPL is developing a 600 MW hydropower project in Bhutan, with an estimated total project cost of ₹6,900 crore. Tata Power’s involvement in the project aligns with its vision to accelerate the shift toward clean and renewable energy. Established on 12 June 2015, KHPL is currently in a development phase, with no turnover recorded over the past three years. Despite this, it holds a net worth of Nu. 6,080 million (approximately ₹608 crore) as of December 2024.

Post-acquisition, KHPL will become an associate company of Tata Power, although this transaction is not categorised as a related party deal. The investment is being executed entirely through cash consideration and requires no Indian regulatory approvals.

Also Read: Tata Power Renewable, an Arm of Tata Power, Secures First Battery Storage Project in Kerala from NHPC!

Tata Power Share Price Performance 

As of July 25, 2025, at 1:16 PM, Tata Power share price is trading at ₹397.85 per share, reflecting a decline of 0.71%. Over the past month, the stock has declined by 1.29%.

Conclusion

Tata Power’s investment in Bhutan’s Khorlochhu Hydro Project represents a strategic expansion of its international clean energy footprint. As the company strengthens its hydro portfolio, this move underscores its long-term commitment to sustainable power and its continued leadership in the energy transition journey across South Asia.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jul 25, 2025, 1:49 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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