Both the Prime Ministers reviewed all aspects of bilateral energy cooperation
India and Bhutan will commission the 1,020 MW Punatsangchhu-II Hydro-electric Project this year which is built on the success of the 720 MW Mangdechhu Hydro-electric Project.
This was announced following Prime Minister Narendra Modi’s State Visit to Bhutan from 22-23 March 2024.
During their bilateral meetings, Prime Minister Narendra Modi and Prime Minister Dasho Tshering Tobgay welcomed the positive expert-level discussions on a technically sound and cost–effective way forward for 1200 MW Punatsangchhu – I HEP.
Both the leaders also had fruitful and wide-ranging discussions in Thimphu, and reaffirmed their commitment to taking bilateral partnership to new heights, looking into the future.
The two leaders noted the stellar contribution of clean energy partnership in the development of hydro-power sector of Bhutan, and in providing energy security to the region.
Prime Minister Modi appreciated growing domestic capacity of Bhutanese firms and technical agencies in implementation of energy projects.
Both the Prime Ministers reviewed all aspects of bilateral energy cooperation and expressed satisfaction that projects, which have been jointly implemented, are functioning well and contributing to economic development in Bhutan.
Both the Prime Ministers agreed:
(i) That the India-Bhutan energy partnership has the potential to benefit both the countries by enhancing energy security, strengthening their economies, generating employment, enhancing export earnings, and contributing to further development of industrial and financial capacities.
(ii) That there are unprecedented opportunities to further strengthening this mutually beneficial bilateral clean energy partnership, including through development of new energy projects and trade in electricity.
(iii) To engage in the development of new energy projects in the fields of hydro-power, solar and green hydrogen, including through the participation of Indian entities as strategic partners.
(iv) That both Governments will review and finalize project – specific implementation modalities for new projects, including reservoir hydro projects.
(v) That the Government of India will facilitate necessary access to financing from financial institutions in India as well as market for power sale for new and upcoming hydro-power projects in Bhutan.
(vi) Power exchange between the two countries shall continue to play an important role in ensuring energy security in the region. In this regard, market access to Bhutanese power producers will be facilitated in accordance with applicable domestic regulations and procedures, through mutually agreed arrangements and delivery points.
(vii) In view of the evolving energy markets, to hold regular consultations for enabling investments in energy projects of Bhutan, and for ensuring seamless cross-border trade in electricity.
(viii) To work towards greater sub-regional energy cooperation, which would lead to increased inter-linkages between the economies for mutual benefit of all stakeholders.
(ix) To strengthen energy cooperation in the field of energy efficiency and energy conservation through capacity development, information exchange on policies and technologies, and research and development on energy efficient technologies.
Both the Prime Ministers agreed to expedite movement on projects and initiatives on the basis of the Joint Vision Statement for mutual benefit.
A joint statement following PM Modi visit elaborated on the bilateral relations:
“Our energy cooperation is a visible illustration of deep economic engagement, which results in mutually beneficial outcomes. We will continue to expand our clean energy partnership in the sectors of hydropower, solar and green hydrogen and jointly develop new projects, which channel our technological prowess, vibrancy of the business sector, and skilled talent of both countries to enhance energy security in the region. In this regard, we welcome the Joint Vision Statement on India-Bhutan Energy Partnership.
“As our nations undergo profound digital and technological transformation, our joint endeavour will be to harness technologies for rapid economic growth and promoting the well-being of the two peoples. We will intensify our engagement in niche sectors of space technology, digital public infrastructure, start-ups, Artificial Intelligence, Clean Energy, STEM research and education and digital skills development.
“We will strengthen trade and investment linkages with each other, particularly through the private sector, including in the context of His Majesty’s vision to develop the Gelephu Special Administrative Region, which will lead to greater economic connectivity in the region in a sustainable manner, promote economic partnerships and bring the people of Bharat and Bhutan closer.
“Excellent people-to-people relations provide the foundation for our exceptional bilateral ties. We will nurture our people-to-people linkages by promoting exchanges of scholars, academics, tourists, students, youth, sport persons. We will continue to nurture our spiritual and cultural affinities including through visits of people to revered cultural heritage sites in the two countries.
“We recognize the imperative of accelerating our partnership in sectors which promote youth development through education, skilling, entrepreneurship, technology, sports and creative and cultural industries. The Bharat-Bhutan partnership will respond to the dreams and aspirations of our youth for a better future.
“Bharat has entered a new chapter in its history, one which is characterised by rapid socio-economic progress and technological advancements, and striving to become a developed nation by 2047 in the Amrit Kaal. Bhutan has the vision to become a high-income nation by 2034 and is embarking on a new phase in its economic development. In the common quest for progress and prosperity, Bharat and Bhutan will continue to be the closest of friends and partners.” Fiinews.com
