Tata Power Acquires 40% Stake in KHPL for Rs 830 Cr

New Delhi, Aug 6 (PTI) Tata Power on Tuesday announced plans to acquire a 40 per cent stake in Khorlochhu Hydro Power Limited (KHPL) for Rs 830 crore to set up a 600 MW hydro project in Bhutan.

In a statement, Tata Power said it has finalized an agreement with Druk Green Power Company to develop the hydro project in the neighbouring country at an estimated cost is Rs 6,900 crore.

Tata Power said it "has proposed acquisition of 40 per cent equity stake in KHPL in one or more tranches for which Share Purchase Agreement would also be executed between Tata Power, existing shareholders of KHPL and KHPL."

The cost for acquisition of 40 per cent equity stake in KHPL is around Rs 830 crore, Tata Power said. As per the terms and conditions to be agreed in the Share Purchase agreement, the first tranche shall tentatively be completed within six months.

The project will support Tata Power to accelerate its clean and green energy transition, the company said.

"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," Praveer Sinha, CEO and Managing Director, Tata Power said in a statement.

In a separate filing, the company said its Board of Directors have approved termination and delisting of its Global Depository Shares (GDS) programme.

"The company has issued GDSs in 1994 wherein Citibank N.A. (Citibank) was appointed as the exclusive depository for this program and same is listed on the Luxembourg Stock Exchange. Considering that there has been no activity for the past several years and this will simplify the Company's financial reporting requirements and reduction in administrative costs, it has been decided to terminate the GDSs program and its engagement with Citibank," the filing said.

Tata Power said it will take necessary steps to terminate the GDS program and its related aspects and consequently GDSs will be delisted from Luxembourg Stock Exchange.