Brief Context
Context India and Bhutan have reaffirmed their longstanding partnership in water resources management and hydropower development during a high level visit by an Indian delegation to Bhutan. India-Bhutan Hydropower Relations Early Cooperation: Indo–Bhutan hydropower cooperation began in 1961 with the signing of the Jaldhaka agreement. The Jaldhaka project is located on the Indian side of the border in West Bengal, and most of the power generated was exported to southern Bhutan.
Source Content
Syllabus: GS2/ International Relations, GS3/ Energy and Infrastructure
Context
- India and Bhutan have reaffirmed their longstanding partnership in water resources management and hydropower development during a high level visit by an Indian delegation to Bhutan.
India-Bhutan Hydropower Relations
- Early Cooperation: Indo–Bhutan hydropower cooperation began in 1961 with the signing of the Jaldhaka agreement.
- The Jaldhaka project is located on the Indian side of the border in West Bengal, and most of the power generated was exported to southern Bhutan.
- A major milestone came in 1987 with the commissioning of the 336 MW Chukha Hydropower Project.
- It was Bhutan’s first mega power project.
- It was funded by India in a 60% grant and 40% loan format, with the loan at 5% interest payable over 15 years after commissioning.
- The 1,020 MW Tala Hydroelectric Project further strengthened bilateral cooperation.
- It was also financed in the 60:40 grant-loan model by the Government of India and significantly enhanced Bhutan’s export earnings.
Institutional Framework between India-Bhutan
- In July 2006, the two countries signed the Agreement on Cooperation in the Field of Hydroelectric Power (HEP), which laid down a formal framework for collaboration.
- In April 2014, both countries signed a Framework Inter-Governmental Agreement to develop Joint Venture (JV) hydropower projects through Public Sector Undertakings (PSUs).
Major Ongoing and Planned Projects
- Punatsangchhu-I (1,200 MW): It has experienced significant delays and cost escalations due to geological problems at the dam site, with work resuming on the main dam structure as of late 2025.
- Joint Venture Model Projects:
- 600 MW Kholongchhu Hydroelectric Project
- 180 MW Bunakha Hydroelectric Project
- 570 MW Wangchu Hydroelectric Project
- 770 MW Chamkharchu Hydroelectric Project
Hydrological Strengths of Bhutan
- Bhutan’s topography and climate uniquely favor large-scale hydropower.
- Major Bhutanese rivers like Punatsangchhu, Wang Chhu/Raidak, Drangme Chhu/Manas, Amochhu/Sankosh, etc. are snow- and monsoon-fed and have steep gradients.
- Bhutan’s glacial lakes and snowmelt are additional water sources, though they also pose Glacial Lake Outburst Flood (GLOF) risks.
Significance for India
- Energy Security and Climate Goals: Bhutan supplies clean and renewable electricity to India, helping India meet its renewable energy and climate commitments.
- Imported hydro power complements India’s solar and wind capacity by providing stable and flexible energy.
- Grid Stability in the Northeast: India’s northeastern grid benefits from flexible hydro capacity, which helps manage seasonal demand and renewable variability.
- States such as Assam gain improved power reliability.
- Reduction in Thermal Dependence: Hydropower imports reduce dependence on coal-based thermal generation. This lowers carbon emissions and reduces fuel import costs.
- Strategic and Economic Dimension: Hydropower is Bhutan’s largest source of revenue, much of which comes from exports to India.
- The cooperation strengthens India’s strategic influence in the Himalayan region amid growing geopolitical competition.
Challenges
- Environmental Risks: Climate change increases the threat of Glacial Lake Outburst Flood (GLOF) and ecological damage.
- Hydrological Variability: Changing rainfall and glacier melt patterns impacts long-term generation.
- Local Concerns: Land acquisition, ecological impacts, and livelihood issues require sensitive handling.
- Debt Sustainability for Bhutan: High borrowing for hydropower projects has raised concerns about external debt levels.
Way Ahead
- Hydropower cooperation remains the cornerstone of India–Bhutan relations.
- It reflects mutual trust, economic interdependence, and shared strategic interests.
- Strengthening transboundary river management and ensuring environmentally sustainable hydropower development will be essential to maintaining this mutually beneficial partnership in the coming decades.
Source: DD News