February 13, 2025

General Studies Paper -3

Context: The recent visit of King Jigme Khesar Namgyel Wangchuck of Bhutan to India marked a significant step in reinforcing the close bilateral ties between the two nations.

Key Outcomes of the Visit

  • Hydropower Collaboration: Both sides emphasized the completion of the timely Punatsangchhu Hydropower Project (Phase I &II).
  • Discussions were held on new reservoir hydropower projects showcasing the shared commitment to advancing energy cooperation.
  • Gelephu Mindfulness City project: India reiterated its support to transform Gelephu (a town in southern Bhutan near the Indian border) into a hub of sustainable development and urban planning.
  • Gelephu’s strategic location near Assam makes it a critical point for regional connectivity and trade.
  • Cross-Border Connectivity: Both sides discussed advancing connectivity initiatives, including:
  • Rail Projects: Enhancing cross-border movement of goods and people.
  • Digital Networks: Strengthening digital infrastructure for greater integration.
  • The inauguration of the Integrated Check Post (ICP) at Darranga, Assam, marks a significant advancement in enhancing connectivity.
  • Private Sector Involvement: Bhutan emphasized its partnership with Indian conglomerates, including the Adani Group.
  • Discussions were focused on renewable energy sources like solar, hydropower, and infrastructure projects in Gelephu.

Significance of Hydropower in India-Bhutan Relations

  • Economic Impact on Bhutan: Hydropower projects account for a major share of Bhutan’s revenue through electricity exports to India.
  • Mutual Benefits: These projects not only enhance Bhutan’s economy but also bolster India’s energy security and renewable energy goals.
  • Future Expansion: Both nations committed to exploring new hydropower opportunities, ensuring the sustainability of this mutually beneficial partnership.

Challenges and Opportunities for India

  • Challenges:
    • Delays in Projects: Prolonged delays in projects like Punatsangchhu-I remain a concern.
    • Geopolitical Pressure: Increased Chinese investments in the region pose challenges to India’s influence.
  • Opportunities:
    • Diversification: Exploring non-traditional sectors like urban planning and digital infrastructure can broaden bilateral ties.
    • Private Sector Engagement: Involvement of companies like the Adani Group can bring new investments and technologies to Bhutan while helping India counter the growing influence of external powers in the region.
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