Tata Power , a leading Indian power company, has completed its third installment of ₹64 crore towards its strategic investment in Bhutan's Khorlochhu Hydro Power Limited (KHPL). This latest tranche is part of a larger ₹830 crore deal to acquire a 40% stake in the Bhutanese hydropower project, marking continued progress in the company's clean energy expansion strategy.

Latest Investment Update

The company has now invested a total of ₹184 crore across three tranches in the 600 MW hydropower project. The latest investment details are:

Transaction Progress

This investment represents the third installment following previous tranches disclosed in August 2024, October 2024, July 2025, and November 2025. The Share Purchase Agreement has been executed between Tata Power, the existing shareholder of KHPL, and KHPL itself. The remaining investment tranches are expected to be completed over the stipulated five-year period.

Strategic Significance

The Khorlochhu Hydropower Project aligns with Tata Power's commitment to accelerating its transition towards clean and green energy. This 600 MW project represents a significant addition to the company's renewable energy portfolio and strengthens its position in the hydropower sector.

Regulatory Framework

The transaction has been structured in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has confirmed that this investment does not fall under related party transactions, and no Indian governmental or regulatory approvals were required for this acquisition. KHPL has become an associate company of Tata Power following the investment.

Project Entity Details

KHPL, incorporated on June 12, 2015, had a net worth of Nu. 6,080 million (approximately ₹608.00 crore) as of December 31, 2024. The company continues to develop this significant hydropower project in Bhutan as part of the broader regional clean energy infrastructure development.

This strategic investment demonstrates Tata Power's continued commitment to expanding its clean energy footprint and contributing to sustainable power generation in the region.

Tata Power 's Managing Director and CEO, Praveer Sinha, recently shed light on India's burgeoning clean energy sector and the challenges facing power distribution companies at the 12th SBI Banking and Economics Conclave in Mumbai. Sinha's remarks underscore the significant strides India has made in its energy transition and the potential for further growth in the renewable energy space.

India's Clean Energy Leap

Sinha emphasized that India's shift towards clean energy presents a unique opportunity for the country to bypass older, less efficient energy systems. He noted that this transition, which began about a decade ago, has seen remarkable acceleration in recent years:

The Tata Power CEO highlighted India's natural advantages that make it well-suited for renewable energy production:

• Over 300 days of sunshine in most regions
• Good wind speeds across the country

Economic Benefits of Clean Energy

According to Sinha, the shift towards clean energy is not just environmentally beneficial but also makes sound business sense. He pointed out that lower production costs associated with renewable energy sources make them increasingly attractive. However, he also emphasized the crucial role of storage technologies in managing the intermittent nature of renewable energy supply.

Power Distribution Sector: A Call for Reform

Sinha's comments on the power distribution sector paint a picture of an industry at a crossroads:

The CEO suggested that the sector might be approaching another restructuring phase, expressing hope that this would be the final bailout for power distribution companies (discoms). He proposed that any future relief should come with preconditions, such as:

• Public-private partnerships
• Privatization initiatives

Looking Ahead

Sinha's optimistic outlook for the power sector was evident in his characterization of the coming years as a 'renaissance' for the industry. This perspective aligns with India's ambitious renewable energy targets and the ongoing reforms in the power distribution sector.

The insights provided by Tata Power's CEO offer a comprehensive view of the challenges and opportunities in India's evolving energy landscape. As the country continues its push towards cleaner energy sources, the coming years will likely see significant changes in both power generation and distribution sectors.