Tata Power to acquire 40% stake in Khorlochhu Hydro Power for Rs 830 crore

The company has partnered with Druk Green Power Corporation to develop the hydropower project in Bhutan.

Tata Power on August 6 said it is set to acquire a 40 percent stake in Khorlochhu Hydro Power Limited (KHPL) for Rs 830 crore to develop a 600 MW hydro project in Bhutan.

The company has partnered with Druk Green Power Corporation to develop the hydropower project in Bhutan at an estimated project cost of Rs 6,900 crore.

“Tata Power Company Limited has proposed acquisition of 40% equity stake in Khorlochhu Hydro Power Limited (KHPL) in one or more tranches for which Share Purchase Agreement would also be executed between the Company, existing shareholder of KHPL and KHPL,” the company said in an exchange filing.

The company said the first tranche of payment would tentatively be made within six months.

Praveer Sinha, CEO and Managing Director said in a media call that all necessary approvals for the project have been received and the power generated from this would be used in Bhutan and partly in India.

“Our planned capex for this financial year is Rs 20,000 Crore. We are committed to adopting and leading the new and emerging clean energy technologies, including pumped hydro projects, Hydropower project in Bhutan, and opportunities to develop Small Modular Nuclear Reactors as Government policy evolves,” said Sinha.

Tata Power said the project would help the company accelerate its clean and green energy transition.

Tata Power reported a consolidated net profit of Rs 1,188.63 crore in the first quarter of the financial year 2024-25, growing four percent from the last year.

The company posted net profit of Rs 1,140.97 crore in the same period last year. Sequentially, net profit increased 13 percent, from Rs 1,045.59 crore reported in the March quarter.