{"id":67861,"date":"2026-02-28T20:37:39","date_gmt":"2026-02-28T15:07:39","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=67861"},"modified":"2026-02-28T21:04:38","modified_gmt":"2026-02-28T15:34:38","slug":"india-bhutan-hydropower-cooperation","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/28-02-2026\/india-bhutan-hydropower-cooperation","title":{"rendered":"India Bhutan Cooperation on HydroPower Projects"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/ International Relations, GS3\/ Energy and Infrastructure<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>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.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India-Bhutan Hydropower Relations<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Early Cooperation:<\/strong> Indo\u2013Bhutan hydropower cooperation began in 1961 with the signing of the Jaldhaka agreement.\n<ul class=\"wp-block-list\">\n<li>The Jaldhaka project is located on the Indian side of the border in <strong>West Bengal<\/strong>, and most of the power generated was exported to southern Bhutan.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>A major milestone came in 1987<\/strong> with the commissioning of the<strong> 336 MW Chukha Hydropower Project.<\/strong>\n<ul class=\"wp-block-list\">\n<li>It was <strong>Bhutan\u2019s first mega power project.<\/strong><\/li>\n\n\n\n<li>It was funded by India in a <strong>60% grant and 40% loan format<\/strong>, with the loan at <strong>5% interest<\/strong> payable over 15 years after commissioning.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>The 1,020 MW Tala Hydroelectric Project<\/strong> further strengthened bilateral cooperation.\n<ul class=\"wp-block-list\">\n<li>It was also financed in the <strong>60:40 grant-loan model <\/strong>by the Government of India and significantly enhanced Bhutan\u2019s export earnings.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Institutional Framework between India-Bhutan<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In July 2006, the two countries signed the <strong>Agreement on Cooperation in the Field of Hydroelectric Power (HEP),<\/strong> which laid down a formal framework for collaboration.<\/li>\n\n\n\n<li>In April 2014, both countries signed a<strong> Framework Inter-Governmental Agreement <\/strong>to develop Joint Venture (JV) hydropower projects through Public Sector Undertakings (PSUs).<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Major Ongoing and Planned Projects<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Punatsangchhu-I (1,200 MW): <\/strong>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<strong> 2025.\u00a0<\/strong><\/li>\n\n\n\n<li><strong>Joint Venture Model Projects:\u00a0<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>600 MW <\/strong>Kholongchhu Hydroelectric Project<\/li>\n\n\n\n<li><strong>180 MW<\/strong> Bunakha Hydroelectric Project<\/li>\n\n\n\n<li><strong>570 MW<\/strong> Wangchu Hydroelectric Project<\/li>\n\n\n\n<li><strong>770 MW<\/strong> Chamkharchu Hydroelectric Project<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Hydrological Strengths of Bhutan<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Bhutan\u2019s topography and climate uniquely favor large-scale hydropower.<\/li>\n\n\n\n<li><strong>Major Bhutanese rivers<\/strong> like <strong>Punatsangchhu, Wang Chhu\/Raidak, Drangme Chhu\/Manas, Amochhu\/Sankosh, <\/strong>etc. are snow- and monsoon-fed and have steep gradients.<\/li>\n\n\n\n<li><strong>Bhutan\u2019s glacial lakes and snowmelt <\/strong>are additional water sources, though they also pose Glacial Lake Outburst Flood (GLOF) risks.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Significance for India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Energy Security and Climate Goals:<\/strong> Bhutan supplies clean and renewable electricity to India, helping India meet its renewable energy and climate commitments.\n<ul class=\"wp-block-list\">\n<li>Imported hydro power complements India\u2019s solar and wind capacity by providing stable and flexible energy.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Grid Stability in the Northeast:<\/strong> India\u2019s northeastern grid benefits from flexible hydro capacity, which helps manage seasonal demand and renewable variability.\n<ul class=\"wp-block-list\">\n<li>States such as Assam gain improved power reliability.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Reduction in Thermal Dependence: <\/strong>Hydropower imports reduce dependence on coal-based thermal generation. This lowers carbon emissions and reduces fuel import costs.<\/li>\n\n\n\n<li><strong>Strategic and Economic Dimension:<\/strong> Hydropower is Bhutan\u2019s largest source of revenue, much of which comes from exports to India.\n<ul class=\"wp-block-list\">\n<li>The cooperation strengthens India\u2019s strategic influence in the Himalayan region amid growing geopolitical competition.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Challenges<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Environmental Risks:<\/strong> Climate change increases the threat of <strong>Glacial Lake Outburst Flood (GLOF)<\/strong> and ecological damage.<\/li>\n\n\n\n<li><strong>Hydrological Variability: <\/strong>Changing rainfall and glacier melt patterns impacts long-term generation.<\/li>\n\n\n\n<li><strong>Local Concerns: <\/strong>Land acquisition, ecological impacts, and livelihood issues require sensitive handling.<\/li>\n\n\n\n<li><strong>Debt Sustainability for Bhutan:<\/strong> High borrowing for hydropower projects has raised concerns about external debt levels.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Hydropower cooperation remains the cornerstone of India\u2013Bhutan relations.\u00a0<\/li>\n\n\n\n<li>It reflects mutual trust, economic interdependence, and shared strategic interests.\u00a0<\/li>\n\n\n\n<li>Strengthening transboundary river management and ensuring environmentally sustainable hydropower development will be essential to maintaining this mutually beneficial partnership in the coming decades.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/ddnews.gov.in\/en\/india-bhutan-step-up-cooperation-on-trans-boundary-rivers-hydropower-projects\/\" target=\"_blank\" rel=\"noopener\"><strong>DD News<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> 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. <\/li>\n<p><\/p>\n<p><strong> India-Bhutan Hydropower Relations <\/strong><\/p>\n<li class=\"ms-5\"> Early Cooperation: Indo\u2013Bhutan hydropower cooperation began in 1961 with the signing of the Jaldhaka agreement. <\/li>\n<li class=\"ms-5\"> 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. <\/li>\n<li class=\"ms-5\"> A major milestone came in 1987 with the commissioning of the 336 MW Chukha Hydropower Project. <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/28-02-2026\/india-bhutan-hydropower-cooperation \" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-67861","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/67861","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=67861"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/67861\/revisions"}],"predecessor-version":[{"id":67865,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/67861\/revisions\/67865"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=67861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=67861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=67861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}