Bhutan and India discuss Gelephu, hydel power plans

Context: India and Bhutan on Thursday discussed bilateral projects in the fields
of electricity and urban planning during the visit of the King Jigme Khesar
Namgyal Wangchuk and Queen Jetsun Pema. Mr. Wangchuk met Prime Minister
Narendra Modi and both sides reiterated continued collaboration on multiple
fronts including in the Gelephu Mindfulness City project and hydropower. The
two sides on Thursday also discussed the hydel power projects including the
1020-MW Punatsangchhu-II hydro power project and expressed satisfaction as it
was nearing completion.

Key points

·       Overview: The two countries
reiterated the importance of cooperation in the hydropower sector, and their
commitment to advancing it, including through finalizing modalities urgently
for new projects, including reservoir hydro projects.

·       Showcasing
India's Green Hydrogen Advancements: India showcased its
progress in green hydrogen technology by presenting a hydrogen-fueled bus,
highlighting the country’s advancements in sustainable mobility.

·       Hydropower
Cooperation: Hydropower cooperation is a cornerstone of India-Bhutan relations. India
has helped construct four major hydroelectric projects (HEPs) in Bhutan.
Recently, Bhutan has been permitted to sell 64 MW Basochhu HEP's electricity in
India’s Day Ahead Market (DAM).

·       Cooperation
in New and Emerging Areas: Space Cooperation - A significant new
area, with the India-Bhutan SAT, launched in November 2022. The satellite aids
in natural resource management and has a digital repeater serving the amateur
radio community.

Fin-tech - Launches
include the RuPay Card (2019, 2020 phases) and the Bharat Interface for Money
(BHIM) app (2021) to enable cashless payments and cross-border
interoperability.

·       Significance
of Bhutan for India: Strategic Location - Bhutan's location
between India and China makes it crucial for India's security. It acts as a
buffer state, preventing direct Chinese access to the Indian territory.

Shared Heritage
-
India and Bhutan share deep cultural and historical ties, primarily through
Buddhism. This cultural connection enhances mutual understanding and
people-to-people relations.

Biodiversity
Conservation - Bhutan’s rich biodiversity is of ecological significance, and India’s
involvement in conservation efforts supports regional environmental goals.

·       Significance
of the project: The Gelephu hydel power project is a key part of
Bhutan's plan to create a carbon-neutral economic hub and regional development
center.

Hydropower - Bhutan exports
a significant amount of hydropower to India, and the Gelephu hub could increase
this energy exchange. This would provide a renewable energy source for Assam
and support its growing demand for clean energy.

Green
infrastructure - The Gelephu Smart City's focus on green infrastructure will promote
sustainable development in the region. Assam could benefit from technology
transfer and green collaborations.

Economic hub - The Gelephu
Mindfulness City (GMC) is a 1,000 square kilometer carbon-neutral economic hub
that focuses on sustainable industries like IT, education, and healthcare. It's
designed to be an investment destination and health and wellness center.

Regional
development - The GMC is aligned with Bhutan's Gross National Happiness philosophy and
aims to drive regional development and job creation. It's also intended to
connect South Asia to Southeast Asia.

·       Conclusion: The GMC is a
special administrative zone with separate, investor-friendly laws. It's
expected to incorporate advanced safety and environmental features, including a
passive decay heat removal system.