India and Bhutan are advancing plans to establish fresh hydropower projects, as detailed in the joint vision document on energy revealed during Prime Minister Narendra Modi’s recent visit to Thimphu. The objective is to explore opportunities for Bhutan to enhance revenue streams by developing hydropower, green energy, and other sustainable projects.
The India-Bhutan joint vision document on energy, unveiled during Prime Minister Narendra Modi’s trip to Thimphu this week, aims to delve into new hydropower projects, along with green and solar energy initiatives, potentially boosting revenue for the Himalayan nation. Modi and his Bhutanese counterpart, Tshering Tobgay, have agreed to collaborate on developing fresh energy projects encompassing hydropower, solar, and green hydrogen, with Indian entities serving as strategic partners. Both countries will assess and finalise project-specific implementation strategies for new ventures, including reservoir hydro projects.
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Developing these sustainable projects will help strengthen the bilateral ties between India and Bhutan. Hydropower development remains a pivotal driver of socio-economic progress for Bhutan, with hydropower revenues constituting a significant portion of its overall income. According to data from the Government of Bhutan, India’s electricity imports from Bhutan totalled Rs 2,448 crore in 2022. The commissioning of the 1,020 MW Punatsangchhu-II hydropower project is anticipated this year. As per the joint vision document, India will facilitate access to financing from financial institutions and the market for power sales for new and upcoming hydropower projects in Bhutan.
This partnership underscores the importance of hydropower cooperation between the two nations, particularly for Bhutan, where hydropower plays a vital role in socio-economic advancement, contributing substantially to the country’s revenue.
