Tata Power has invested ₹60 crore in the second tranche of its strategic investment in Khorlochhu Hydro Power Limited (KHPL), subscribing to 60,00,000 equity shares at ₹100 each. This investment is part of the company’s plan to acquire a 40% equity stake in KHPL, a 600 MW hydropower project in Bhutan with a total project cost of approximately ₹6,900 crore. The investment aligns with Tata Power’s strategy to enhance its clean and green energy portfolio.
Strategic Investment in KHPL
Tata Power has made a further investment in Khorlochhu Hydro Power Limited (KHPL) as part of a strategic initiative. The company has invested ₹60 crore in the second tranche. This investment is part of the company’s plan to acquire a 40% equity stake in KHPL.
Details of the Investment
The company subscribed to 60,00,000 equity shares of ₹100 each, equivalent to 40% of the issued and paid-up equity capital of KHPL. KHPL is developing a 600 MW Khorlochhu Hydropower Project in Bhutan with a total project cost of approximately ₹6,900 crore. This investment will happen over a period of five years. The company has already executed a Share Purchase Agreement between the Company and the existing shareholder of KHPL.
Rationale Behind the Acquisition
This investment is in line with Tata Power’s commitment to clean and green energy transition. The 600 MW Khorlochhu Hydropower Project in Bhutan will support the company to accelerate its clean energy initiatives.
KHPL as an Associate Company
Following this investment, KHPL has become an associate company of Tata Power. The transaction is executed on the basis of Share Purchase Agreement. No Indian Governmental or regulatory approvals are required for this acquisition.
Source: BSE
