Bhutan and India discuss Gelephu, hydel power plans

Last Updated07/12/2024

India and Bhutan on Thursday (December 5, 2024) discussed bilateral projects in the fields of electricity and urban planning during the visit of King Jigme Khesar Namgyal Wangchuk and Queen Jetsun Pema.

On December 5, 2024, India and Bhutan reaffirmed their enduring partnership during the visit of Bhutan’s King Jigme Khesar Namgyal Wangchuk and Queen Jetsun Pema. Discussions encompassed diverse areas, including electricity, urban planning, and cross-border connectivity, underscoring the nations' commitment to mutual growth and regional stability.

India’s Commitment:
- Prime Minister Narendra Modi assured continued support for the Gelephu Mindfulness City Project, which is aimed at enhancing Bhutan’s economic prosperity and strengthening cross-border economic linkages.
Potential Investments:
- The Adani Group has been in talks with Bhutan for investments in airport infrastructure, renewable energy, and urban development as part of the Gelephu project.

Progress on Key Projects:
- Both sides expressed satisfaction with the nearing completion of the 1020 MW Punatsangchhu-II hydroelectric project.
Future Focus:
- Leaders emphasized the need to finalize modalities for new reservoir-based hydropower projects and expedite the conclusion of the Punatsangchhu-I project.
- Hydropower remains a cornerstone of India-Bhutan cooperation, contributing to Bhutan’s economic growth and India’s renewable energy goals.

Rail and Digital Networks:
- Discussions included plans to enhance connectivity through rail projects and the development of cross-border digital infrastructure. These initiatives aim to boost trade and people-to-people ties.

India’s Engagement with Bhutan:
- The visit comes amid challenges in India’s neighborhood diplomacy, with strained relations in Bangladesh and growing Nepal-China ties. Bhutan’s continued cooperation highlights its strategic importance for India in South Asia.
Adani Group Concerns:
- While other neighboring countries, including Sri Lanka and Bangladesh, are reviewing Adani projects, Bhutan has not publicly commented on the matter. The Adani Group’s potential investments in Gelephu reflect ongoing economic collaboration despite external scrutiny.

The visit of Bhutan’s royals reaffirms the deep-rooted partnership between the two nations. Prime Minister Modi emphasized India’s commitment to advancing bilateral ties, which remain vital for regional cooperation, economic integration, and sustainable development in South Asia.