Bhutan concerns on Indian projects
- Bhutan wants more focus of India on issues like hydropower project constructions.
- According to Bhutanese experts, Hydropower projects are critical for the Bhutanese economy and are at the core of Bhutan’s plans for self-reliance ever since the first five-year plans in 1961
Rising Debt of Bhutan:
- As of July 2017, Bhutan’s debt to India for the three major ongoing projects: Mangdechhu, Punatsangchhu 1 and 2 is approximately 12,300 crore which accounts for 77% of the country’s total debt, and is 87% of its GDP
- The cost of the 720 MW Mangdechhu project has nearly doubled in the past two years
- Both Punatsangchhu 1 and 2, each of 1200 MW capacity have trebled in cost and been delayed more than five years over the original completion schedule
Indian Government stance:
- The Indian government is looking at the proposals of the hydropower committee of Bhutan
- But accepted that it would be difficult to meet many of them, given India’s own power sector needs to compete in the same area
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