The India-Bhutan joint vision document on energy launched during Prime Minister Narendra Modi’s visit to Thimphu this week aims to explore new hydropower projects, besides green and solar energy projects, which could lead to additional revenue generation for the Himalayan nation. Modi and his counterpart, Tshering Tobgay, decided to engage in the development of new energy projects in the fields of hydropower, solar and green hydrogen, with the participation of Indian entities as strategic partners. India and Bhutan will review and finalise project-specific implementation modalities for new projects, including reservoir hydro projects.
Mutually beneficial hydropower cooperation with Bhutan is a key pillar of bilateral economic cooperation. For Bhutan, hydropower development continues to be a vital catalyst for socio-economic development and revenues from hydropower constitute a significant portion of its total revenues. India’s imports of electricity from Bhutan amounted to Rs 2,448 crore in 2022, as per the Government of Bhutan’s data. The 1,020 MW Punatsangchhu-II hydropower project is expected to be commissioned this year. India will also facilitate necessary access to financing from financial institutions in India as well as market for power sale for new and upcoming hydropower projects in Bhutan, according to the joint vision document.