Tata Power to Acquire 40% Stake in Bhutan’s Khorlochhu Hydro Project
Tata Power has signed a Share Purchase Agreement with Bhutan’s Khorlochhu Hydro Power Ltd. (KHPL) for acquiring 40% stake in the latter. As per Tata Power’s stock filing dated 28th October 2024, this acquisition is valued at Rs. 830 crore.
Tata Power mentioned that the payment for this acquisition will be made in multiple tranches, with the first payment scheduled to be completed by 31st March 2025. The remaining amount will be paid over the following five years. However, the company has not disclosed the specific payment breakup for the acquisition of Khorlochhu Hydro Power Ltd.
Tata Power mentioned that the payment for KHPL’s shares will be made in cash.
This deal between Tata Power and KHPL involves the development of 600 MW Khorlochhu Hydropower Project in Bhutan, which is estimated to cost Rs. 6,900 crore. Upon completion of the Khorlochhu project, Tata Power will have four hydropower projects outside India. Currently, the company operates hydropower projects in Georgia, Zambia, and Bhutan with a total installed capacity of 433 MW.
In August 2023, the company also signed Memorandum of Understanding (MoU) with Maharashtra government for development of hydro power projects.
Khorlochhu Hydro Power’s acquisition will strengthen Tata Power’s Renewable Energy (RE) portfolio, particularly in the hydropower sector. The development of the 600 MW Khorlochhu Hydropower Project aligns with Tata Power’s strategy to expand its renewable energy capacity through hydroelectric projects.
