DGPC and Adani Group Sign MoU for Wangchhu Hydropower Project, Strengthening Bhutan-India Economic Ties
The Druk Green Power Corporation (DGPC) and India’s Adani Group signed a Memorandum of Understanding (MoU) on Sunday, marking a significant milestone in the development of the Wangchhu Hydropower Project. An official from DGPC revealed that this MoU reflects a mutual interest, with the Adani Group agreeing to construct the downstream projects of the Tala project.
“There are two options for taking this project forward: either as a 570MW run-of-the-river scheme or a 900MW reservoir scheme,” the DGPC official explained. Detailed Project Reports for both alternatives are already available, and the two parties will engage in discussions to evaluate the technical and cost parameters of each option. The choice between the run-of-the-river and reservoir schemes will be made based on their respective benefits.
Both sides have committed to closely collaborating to understand the project parameters and will convene to decide on whether to pursue a joint venture and the implementation modalities. “We need to work for three to five months to finalise the project,” the official stated. Given the ongoing hydropower projects, DGPC opted for the Wangchhu project as a priority, though other projects will be explored for future cooperation.
Gautam Adani, Chairman of the Adani Group, announced on X that an MoU had been signed with DGPC for a 570MW green hydropower plant in Chukha. He commended the Prime Minister of Bhutan for advancing His Majesty The King’s vision and undertaking broad-ranging infrastructure initiatives across the kingdom. Adani expressed enthusiasm about collaborating closely on hydro and other infrastructure developments in Bhutan.
The government of Bhutan will maintain its close collaboration with the government of India in the hydropower and solar energy sectors. This project exemplifies the strong cooperation between the two countries. Additionally, DGPC is in discussions with the Tata Group regarding the construction of the 600MW Kholongchhu hydropower project.
The economic relationship between India and Bhutan is marked by strong cooperation, especially in the hydropower sector. India has been a major partner in Bhutan’s economic development, providing technical assistance and financial support for various projects. Hydropower is a cornerstone of this relationship, with Bhutan exporting electricity to India, which is a significant source of revenue for Bhutan. This collaboration has helped Bhutan achieve economic stability and growth while addressing India’s energy needs.
Moreover, During March 22, 2024, Indian Prime Minister Narendra Modi announced a 10,000 crore (approximately USD 1.4 billion) economic assistance package to Bhutan during his visit. This substantial aid underscores India’s commitment to supporting Bhutan’s development agenda, covering various sectors such as infrastructure, health, education, and technology. The package is aimed at enhancing Bhutan’s overall socio-economic development, further solidifying the bond between the two nations.
The MoU between DGPC and the Adani Group for the Wangchhu Hydropower Project is a significant step in strengthening Bhutan-India relations. With options for a 570MW run-of-the-river or a 900MW reservoir scheme, the project is set to bolster Bhutan’s hydropower capacity. The collaborative efforts of the two nations, underpinned by significant financial aid and ongoing cooperation in various sectors, continue to foster a robust and mutually beneficial economic partnership.
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