Tobgay invites more Foreign Direct Investment in hydropower

Bhutan is looking at attracting more foreign investments and greater private participation in expanding the country’s hydro power sector.

“We encourage private sector participation in the hydro power sector. We encourage Foreign Direct Investment (FDI),” Prime Minister Tshering Tobgay said on Monday while addressing industry chambers – CII, Ficci and Assocham, in New Delhi.

“For smaller projects, we will be encouraging aggressively the private sector and FDI,” Tobgay said.

Tata Power, among others, is already working on a hydel project in Bhutan. Many hydel projects are being developed under an agreement between the two countries – Bhutan and India. The Indian government has agreed to develop 10,000 MW of hydro power in Bhutan by 2020.

Tobgay said: “Three of those projects are already under construction, six other DPRs (Detailed Project Reports) are already ready…”

Under Indo-Bhutan co-operation, many hydel projects including 1,020 MW Tala plant are already functioning.

Tobgay said that if there are delays, then the implementation and investment modalities could be re-looked into.

He also mentioned the government would not look to revise the country’s hydro power policy adopted by the Thinley government.