Bhutan seeks India deals in US$15 billion hydropower push to raise national happiness

“We are talking to a lot of strategic partners in India today, and we also look forward to talking to strategic credible international partners,” said Ujjwal Deep Dahal, CEO of Druk Holding and Investments, the commercial arm of the Royal Government of Bhutan.

Bhutan’s total installed capacity for hydrological power is currently about 2,500 megawatts, and it will add around 1,000 megawatts by next year. The government hopes to have a capacity of 4,000 megawatts in the medium term, according to Dahal.

“We are looking to discuss more hydro projects to the tune of about 10,000 megawatts,” he said, adding that these would be planned over the next decade.

On Bhutan’s National Day last month, King Jigme Khesar Namgyel Wangchuck had announced the nation would focus on developing Gelephu Mindfulness City, a special economic zone, as well as prioritise hydropower development.

Gelephu Mindfulness City will be developed in Bhutan’s Sarpang district, which borders Chirang district in India’s northeastern Assam state. Gelephu is one of three entry points to Bhutan from India, the others being Samdrup Jongkhar to its east and Phuntsholing to its west.

The success of the Gelephu project would depend on prioritising energy, connectivity and skills upgrades, the Bhutanese king said, adding that the key to energy development would be enhancing the installed capacity of hydropower projects by expediting construction.

The Himalayan state should aim to offer the most competitive electricity prices in the region to boost revenues as well as investment, he said.

Bhutan has been trying to revive its economy after the Covid-19 pandemic battered its aid- and tourism-reliant economy for three years.

There are a couple of hydropower projects planned with