Modi to inaugurate Bhutan power project

Indian Prime Minister Narendra Modi is set to inaugurate a 720 MW hydroelectric project built with India’s aid during a visit to Bhutan August 17-18. It will be Modi’s first visit to Bhutan of his second term. In 2014, when he first became prime minister, Bhutan was the first foreign country he officially visited.

“The highlight of the visit will be the inauguration of the Mangdechhu hydroelectric power project… 720 MW, four units, three of which have already been commissioned at a cost of about INR 5,012 crore,” Foreign Secretary Vijay Gokhale said. “It is actually the most cost-effective hydro project in South Asia,” he said.

The hydropower sector is a major pillar of India-Bhutan cooperation. The Mangdechu project is the fourth such project after Tala (1020 MW), Chukha (336 MW) and Kurichhu(60MW).Theprojectispartofthe 2006 Agreement on Cooperation in Hydropower and the Protocol to the 2006 agreement signed in March 2009. Under this Protocol, India has agreed to assist Bhutan to develop a minimum of 10,000 MW of hydropower and import the surplus electricity to India by 2020.

Currently, there are two other model hydroelectric projects under this Protocol – the 1200 MW Punatsangchhu-I and the 1020 MW Punatsangchhu-II. Gokhale said during

Modi’s visit, both sides will initiate discussions on the 2500 MW Sunkosh hydroelectric project, roughly four times the size of Mandechhu.

Modi and his Bhutanese counterpart Lotay Tshering will also jointly inaugurate the Indian Space Research Organisation’s Ground Station in the Himalayan kingdom.

During his visit, Modi will roll out the RuPay card, India’s indigenous card scheme created by National Payments Corporation of India that offers a domestic, open-loop, multilateral system to allow all Indian banks and financial institutions to participate in electronic payments. Bhutan will be the second foreign country, after Singapore, where the RuPay card will be rolled out.

Several agreements, including in health care and education, will be signed. Modi will also address students of the Royal University of Bhutan. Dwindling numbers of Bhutanese students in India has been a concern.