Despite glitches, Bhutan-India move ahead on hydropower plans

Though many hydropower projects announced to be construction as joint venture with India are being delayed or pushed to uncertainty, Bhutan continues to sign pact inviting its southern neighbour to construct more projects.

On Tuesday (22 April), India and Bhutan today signed “Inter-Governmental Agreement” for the development of Joint Venture Hydropower Projects through the Public Sector Undertakings of two governments.

“Hydropower cooperation with Bhutan is a classic example of win-win cooperation, providing clean electricity to India, generating export revenues for Bhutan, and further strengthening our bilateral economic linkages,” a statement issued by India’s Ministry of External Affairs said.

The agreement was signed by P K Sinha, Secretary, Ministry of Power, from the Indian side and Sonam Tshering, Bhutan’s Secretary, Ministry of Economic Affairs.

The agreement provides the framework for implementing four hydro-electric projects (HEPs) – 600 MW Kholongchu project, 180 MW Bunakha project (with 230 MW downstream benefit from Tala, Chukha and Wangchu HEPs), 570 MW Wangchu project and 770 MW Chamkarchu project – totalling 2120 MW.

However, the 540 MW Amochu Hydroelectricity project, an important one in Indo-Bhutan power planning, is under deep uncertainty over security as well as environmental issues.

Despite being one of the most financially viable and technically feasible one, the project’s upcoming is under uncertainty. Though it was supposed to enter into construction phase in 2013, it is, in actual, still at planning stage now.

Initially, India had not agreed to finance the project but later included into the 10,000 MW power generation bundle to which India had given green signal.

India is concern on the exact location of Amochu project that falls at India’s tri-junction, the point where boundaries of three nations meet. And it posed security issues.