GELEPHU PROJECT & HYDROPOWER PLANS OF INDIA & BHUTAN
Date of Event: December 5, 2024
Key Participants:
- Bhutan: King Jigme Khesar Namgyel Wangchuck, Queen Jetsun Pema
- India: Prime Minister Narendra Modi
OVERVIEW OF THE VISIT
- On December 5, 2024, King Jigme Khesar Namgyel Wangchuck and Queen Jetsun Pema of Bhutan visited India to engage in discussions aimed at strengthening bilateral relations, particularly in the areas of electricity, urban planning, and infrastructure.
- During the visit, the Bhutanese King met with Indian Prime Minister Narendra Modi, and both sides discussed important bilateral projects, including the Gelephu Mindfulness City project and ongoing hydropower projects.
ABOUT GELEPHU MINDFULNESS CITY PROJECT
Key Aspects of the Project:
- The Gelephu Mindfulness City project is a major urban development initiative in Bhutan that aims to create a smart city with an emphasis on mindfulness, well-being, and sustainable urban living.
- It is designed to enhance Bhutan’s economy and improve the quality of life for its citizens, especially in border regions, while also fostering cross-border connectivity.
India’s Role and Support:
- Prime Minister Narendra Modi reaffirmed India’s continued support for the project, which aims to bring prosperity not only to Bhutan but also to the border areas.
- The project is seen as an important element of India-Bhutan economic and investment relations, and India’s cooperation is expected to bolster Bhutan’s economic development and regional infrastructure.
Significance:
- India’s commitment to supporting the Gelephu project is seen as strategically important, especially considering India’s ongoing efforts to maintain strong diplomatic relations with its neighbors.
- The assurance from India on this project is timely, coming against the backdrop of diplomatic setbacks India has experienced in its neighborhood, especially in countries like Bangladesh and Nepal.
ADANI GROUP’S ROLE
- The Adani Group has been reported to be in discussions with the Bhutanese government for potential investment in the Gelephu project.
- The Adani Group is considering projects related to airport development, infrastructure, and renewable energy in the region.
- In July 2024, Bhutan’s King Wangchuk and Prime Minister Lyonchhen Tshering Tobgay visited Gujarat, where they sought cooperation from the Adani Group in these sectors.
- The Adani Group has been facing international controversies, with reviews of its projects being conducted in countries like Sri Lanka and Bangladesh.
- However, Bhutan has not publicly commented on these controversies, and discussions with the Adani Group seem to be ongoing for the smart city project in Gelephu, with particular interest in solar power and hydropower
HYDROPOWER COOPERATION
- Punatsangchhu-II Hydropower Project (1020 MW): One of the key focus areas of the talks was the progress on hydropower projects.
- The Punatsangchhu-II project, with a capacity of 1020 MW, is an important hydroelectric project that is nearing completion.
- Both sides expressed satisfaction with the progress and discussed timelines and further cooperation in the hydropower sector.
- Punatsangchhu-I Hydropower Project: The two sides also discussed the Punatsangchhu-I project, another major hydropower initiative.
- The completion of this project is considered critical for Bhutan’s electricity needs and energy exports. Both leaders agreed on the need for the early conclusion of the Punatsangchhu-I project to ensure the timely availability of power.
PAST & FUTURE OF HEPs
- Both India and Bhutan emphasized the importance of continuing cooperation in the hydropower sector, particularly in terms of new hydroelectric projects.
- The discussions also focused on the need to finalize modalities for reservoir-based hydro projects and other future ventures.
- The two nations highlighted the urgency of advancing new projects to meet Bhutan’s growing energy needs and further enhance cooperation between the two countries.
CROSS BORDER CONNECTIVITY PROJECTS
- Rail Connectivity: The two leaders discussed the possibility of enhancing cross-border connectivity, particularly through the development of a rail line between India and Bhutan.
- The proposed rail project aims to facilitate better transportation, trade, and people-to-people connectivity between the two countries.
- Digital Networks: In addition to physical infrastructure, the discussion also covered digital connectivity.
- Both countries are committed to improving their digital networks to facilitate smoother communication, trade, and cooperation in various sectors.
REGIONAL DYNAMICS
- Diplomatic Setbacks for India: India’s diplomatic position in the region has faced challenges in recent months:
- Bangladesh: Relations with Bangladesh have become strained since the fall of the Sheikh Hasina government in August 2024. India’s ties with the new interim government have yet to stabilize, adding uncertainty to regional relations.
- Nepal: Similarly, India’s influence in Nepal has been diluted. Prime Minister Khadga Prasad Sharma Oli has prioritized ties with China, even signing a new Framework for Belt and Road Cooperation with China in December 2024. This move further solidified Nepal’s ties with Beijing, reducing India’s influence in the region.
Despite these challenges, India remains committed to strengthening its relationship with Bhutan, which is seen as a critical ally in maintaining regional stability and counterbalancing China’s growing influence in South Asia.
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