Tata Power Buys 40% Stake in Khorluchhu Hydro Power for Rs 830 Crore

In a strategic move to bolster its renewable energy portfolio, Tata Power Co. is set to acquire a 40% stake in Khorlochhu Hydro Power Ltd. (KHPL). This acquisition, valued at approximately Rs 830 crore, underscores Tata Power’s commitment to expanding its green energy initiatives. The acquisition process, outlined in a recent exchange filing on the BSE, marks a significant step towards enhancing the company’s clean energy capabilities.

Tata Power’s Strategic Acquisition

Tata Power Co. is set to enhance its renewable energy portfolio by acquiring a 40% stake in Khorlochhu Hydro Power Ltd. (KHPL) for approximately Rs 830 crore. According to a recent exchange filing on the BSE, KHPL will become Tata Power’s associate company following the acquisition. The transaction will be carried out through a cash consideration in one or more tranches, with a share purchase agreement to be executed between Tata Power and the existing shareholder of KHPL. The first tranche is expected to be completed within six months.

Development of 600 MW Hydro Power Project

The primary objective of this acquisition is to develop the 600 MW Khorlochhu Hydro Power Project in Bhutan, with an estimated total investment of Rs 6,900 crore. Tata Power will collaborate with Druk Green Power Corp. to bring this project to fruition. This significant investment is part of Tata Power’s broader strategy to accelerate its transition to clean and green energy. The company emphasized that this project aligns with its commitment to sustainable development and renewable energy expansion.

Conclusion: This strategic acquisition by Tata Power underscores its commitment to expanding its renewable energy footprint. By partnering with Druk Green Power Corp. to develop a substantial hydroelectric project in Bhutan, Tata Power is taking a significant step towards its goal of a greener future. Tata Power’s stock currently trades at Rs.428.65 per share down by 1.81% from its previous day’s closing price.

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