Tata, Adani, Reliance power up Bhutan Hydroelectric ambitions in India-Bhutan energy collaboration

TDT | agencies

Email : editor@newsofbahrain.com

India and Bhutan have taken a big step forward in their ties and energy cooperation. During his visit to Bhutan on Tuesday, Prime Minister Narendra Modi announced a ₹4,000 crore (about $455 million) line of credit to support new energy projects, Reuters reported. He also joined King Jigme Khesar Namgyel Wangchuck to inaugurate the 1,020-megawatt Punatsangchhu-II hydroelectric power project, which has been built with Indian support.

Private Indian companies such as Tata Power, Adani Group, and Reliance Power have also signed agreements with Bhutan’s Druk Green Power Corporation to develop more hydroelectric projects in the coming years, according to Reuters.

This visit comes amid India’s effort to strengthen its ties with Bhutan, at a time when Beijing has been working to establish diplomatic relations and settle its border dispute with Bhutan. Hydropower project to boost Bhutan’s capacity

The leaders of the two countries inaugurated the Punatsangchhu-II project, which will boost Bhutan’s total hydropower capacity by nearly 40%. The project is the fifth major hydropower initiative supported by India in Bhutan. This brings the combined generation capacity of Indian-assisted projects to nearly 3,000 megawatts.

Both leaders also discussed ways to improve connectivity, which they said is essential for trade and regional growth. “Connectivity creates opportunity. And opportunity creates prosperity,” PM Modi said, announcing that India will link Gelephu and Samtse in Bhutan to India’s rail network. Once completed, this will help Bhutanese farmers and industries get access to India’s large markets easily. Former Bhutanese energy minister Lok Nath Sharma said that after meeting its own energy needs (around 1,000 megawatts), Bhutan will export the surplus electricity to India.