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

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.

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