Watch: Highs and lows in neighbourhood ties: Is Delhi softening tone?

Is New Delhi making a subtle strategic outreach to its south Asian neighbourhood this season? Bhutan’s King, Sri Lanka and Maldives’ presidents, Nepal’s Foreign Minister received warm welcomes in Delhi.

As the Foreign Secretary travels to Dhaka, weeks after External Affairs Minister S. Jaishankar’s visit to Islamabad, how will 2025 treat subcontinental ties, and how big will the China factor be?

Presentation: Suhasini Haidar

Editing: Kanishkaa Balachandran, Sabika Syed

The collaboration marks the largest partnership between two of the leading power companies of the two nations in Asia’s clean energy sector. Representational file image.
| Photo Credit: Reuters

Tata Power on Tuesday (November 19, 2024) said it has entered into a strategic partnership with Bhutan’s Druk Green Power Corporation Ltd (DGPC) for the development of 5,000 MW of clean energy capacity in the Himalayan nation.

DGPC, is a subsidiary of Druk Holding and Investments Ltd, the sole generation utility of Bhutan.

The collaboration marks the largest partnership between two of the leading power companies of the two nations in Asia’s clean energy sector, Tata Power said in a statement.

Through the collaboration, at least 5,000 MW of renewable energy projects; including 4,500 MW of hydropower comprising the 1,125 MW Dorjilung HEP (hydro-electric project); 740 MW Gongri Reservoir; 1,800 MW Jeri Pumped Storage; and 364 MW Chamkharchhu IV will be developed in phases, the statement said.

Another 500 MW of solar projects will be developed by Tata Power Renewable Energy Ltd (TPREL), a subsidiary of Tata Power.

“Tata Power’s partnership with Druk Green Power Corporation reinforces our credentials as the most preferred clean energy partner in the region. Together, we are building 5000 MW of clean energy capacity that will help harness Bhutan’s hydropower potential and support both countries’ growing energy demands with reliable and round-the-clock clean energy supply. Together we are shaping a new energy era,” Praveer Sinha, CEO & MD, Tata Power, said.

The Memorandum of Understanding (MoU) was signed at Thimphu between Dasho Chhewang Rinzin, MD – DGPC and Praveer Sinha, CEO & MD – Tata Power, in the presence of Prime Minister of Bhutan, Dasho Tshering Tobgay; Minister for Energy & Natural Resources, Lyonpo Gem Tshering; Chairman – Tata Sons, N Chandrasekaran; Ambassador of India to Bhutan, Sudhakar Dalela; and other senior officials from the Royal Government of Bhutan, Embassy of India, DGPC and Tata Power.

“This strategic partnership with Tata Power is in keeping with Bhutan’s aspirations to maximize benefits to the people of Bhutan through fast-tracking the harnessing of its huge renewable energy resources for its economic development and long-term energy security,” Dasho Chhewang Rinzin, MD, DGPC said.

Tata Power has had a long-standing relationship with DGPC since 2008, when the two companies joined forces to successfully develop the 126 MW Dagachhu Hydropower Plant as the first Public-Private Partnership in Bhutan’s hydropower sector.

Tata Power also has a transmission project of 1,200-km long Tala transmission line that evacuates clean power from Bhutan to India.

As a precursor to this collaboration, Tata Power recently acquired a 40 per cent stake in the 600 MW Khorlochhu Hydroelectric Project.

Tata Power has a robust clean and green portfolio crossing 12.9 GW (6.4 GW operational, 6.5 GW under construction) which constitutes 42 per cent of its total capacity, and is well-positioned to expand this to 70 per cent by 2030.

Bhutan’s hydropower generation which peaks during the monsoon months complements India’s demand patterns that also peak in the summer months.

More importantly, Bhutan sees its hydropower as critical in ensuring round-the-clock availability of power with India’s huge investments in renewables such as solar and wind and the plans to further accelerate investments in these renewables over the next two decades.

DGPC has a portfolio of 2,453 MW of Hydro capacity in Bhutan, a large percentage of which is being exported to India, especially during the monsoon months. DGPC is envisioned to achieve 5,500 MW Hydro capacity within the next 5 years timeline including investments & development of Small Hydro and solar Projects.

Watch | Gelephu megacity dreams | Bhutan PM interview | Worldview

This week we are looking at Bhutan, India’s smallest and most reclusive neighbour, that rarely gets spoken about.

But now, with an announcement made in December by the Bhutanese King Jigme Khesar Namgyel Wangchuck is hoping to make a big splash, with the creation of the Gelephu Mindfulness City (GMC) to its south bordering Assam.

The plan for Gelephu includes:

Developing about 2,000 square kms of Bhutanese territory as a carbon-negative Special Administrative Region, attracting investors and service industry giants to set up there. A Danish firm has already been chosen and is working on plans for buildings, bridges, markets and a dam.

Building a new airport to replace the existing airstrip- this is one of the most cost-intensive projects, and Indian officials have already visited for feasibility studies.

Special facilities to bring in IT companies, health, hospitality, educations sectors in particular.

Investment in infrastructure and connectivity – India has already committed to a rail line right up to Gelephu, a ₹1,000 crore project, transit trade, border checkpoint facilities for trade and upgrading roads to the North East and Bangladesh, the trination highway. Prime Minister Narendra Modi also announced a doubling of Bhutan’s outlay for the next 5 year plan, from ₹5,000 crore to 10,000, of which about ₹1,500 crore is part of an economic stimulus plan for Bhutan.

The plan for Gelephu as a megacity is not new. Many countries have such plans, like Saudi Arabia’s NEOM; Indonesia’s Nusantara; Egypt’s New Administrative Capital; India had the ambitious Amravati project which was shelved; Pakistan has Gwadar Port and City- built by China; Sri Lanka’s Hambantota Port project, which has now been leased to China due to financial losses.

We spoke to Bhutan’s PM Tshering Tobgay, and asked him how feasible this plan for Gelephu is, and how to avoid the pitfalls of becoming a white elephant.

Script and presentation: Suhasini Haidar

Production: Shibu Narayan

Beijing:

China and Bhutan on Tuesday signed a “Cooperation Agreement” outlining the responsibilities and functions of the Joint Technical Team (JTT) on the delimitation and demarcation of the boundary between the two countries after their 25th round of border talks in Beijing.

Bhutan’s Foreign Minister Dr. Tandi Dorji, who is currently visiting Beijing, and China’s Vice Foreign Minister Sun Weidong held the 25th Round of Boundary Talks on Monday and Tuesday.

On the sideline of border talks, Dorji met Chinese Vice President Han Zheng on Tuesday and held talks with Foreign Minister Wang Yi on Monday during which they urged Bhutan to establish diplomatic ties with China and resolve the boundary issue as soon as possible to transform the relations between the two neighbours into legal form.

The two sides held in-depth discussions on the boundary negotiations and noted the progress made through a series of Expert Group Meetings since the 24th Round of Boundary Talks in 2016, a joint press release issued by the Bhutanese Foreign Ministry said.

During the talks, the two leaders of the delegations signed the Cooperation Agreement between Bhutan and China on the Responsibilities and Functions of the Joint Technical Team (JTT) on the Delimitation and Demarcation of the Bhutan-China Boundary, it said.

The JTT was established during the 13th Expert Group Meeting to assist the Expert Group in the implementation of the Memorandum of Understanding (MoU) on the Three-Step Roadmap.

The two sides agreed to continue working together to simultaneously push forward the implementation of all the steps of the Three-Step Roadmap, it said, adding that both sides agreed to build on the positive momentum.

The discussions were held in a warm and friendly atmosphere in keeping with the ties of friendship and cooperation between Bhutan and China. The two sides also exchanged views on enhancing bilateral relations and matters of mutual interest, the press release said.

In his meeting with Dorji, Han said both sides agreed to accelerate the boundary demarcation process and the establishment of diplomatic relations between the two countries.

Han said that China and Bhutan are friendly neighbours and although the two countries have not yet established diplomatic relations, they have long maintained friendly exchanges.

“China always respects Bhutan’s independence, sovereignty and territorial integrity, and is willing to strengthen exchanges at all levels and in all fields, expand practical cooperation on the economy, trade, culture and tourism, and accelerate the boundary demarcation process and the establishment of diplomatic relations with Bhutan to bring more benefits to the two countries and the two peoples,” Han said.

For his part, Dorji told Han that the Bhutanese government attaches great importance to the development of relations with China and abides firmly by the one-China principle. Both sides have firm determination and a sincere desire to demarcate their boundaries and establish diplomatic relations at an early date, state-run Xinhua news agency reported.

Wang told Dorji that the restoration of diplomatic ties will serve the long-term interests of both countries, a Chinese Foreign Ministry press release here said.

“The conclusion of boundary negotiations and the establishment of diplomatic relations between China and Bhutan fully serve the long-term and fundamental interests of the country and nation of Bhutan,” Wang said.

China is ready to work with Bhutan in the same direction, seize the historic opportunity, complete this important process as soon as possible, and fix and develop China-Bhutan friendly relations in legal form,” Wang, also a member of the powerful Political Bureau of the ruling Communist Party, told Dorji.

The Chinese Foreign Ministry press release quoted Dorji as saying that Bhutan firmly abides by the one-China principle meaning Taiwan and Tibet are part of China and stands ready to work with China for an early settlement of the boundary issue and advance the political process of establishing diplomatic relations.

China and Bhutan do not have diplomatic relations but maintain contact through periodic visits by officials.

While Beijing resolved the boundary disputes with the 12 other neighbours, India and Bhutan are the only two countries China has yet to sign the border agreements.

China in recent years stepped up efforts to establish full-fledged diplomatic ties with Bhutan and to expedite negotiations to reach a settlement for the vexed border dispute which was complicated by Beijing’s attempts to claim Doklam despite Thimphu’s assertions that the area belonged to it.

China’s attempts to build a road in the Doklam plateau in 2017 resulted in an India-China stand-off triggering tensions between the two neighbours.

India strongly opposed the construction of the road by the Chinese military at the Doklam tri-junction as it would have impacted its overall security interests since it runs close to the narrow Siliguri Corridor also known as the Chicken Neck connecting India with its north-east.

The standoff ended after Beijing dropped its plan to build the road.

Also in 2020, China made a surprising claim on Sakteng Wildlife Sanctuary in Bhutan at the Global Environment Facility (GEF) Council by opposing funding for the project.

Bhutan has lodged a demarche to the Chinese Embassy in India over China’s claim over the sanctuary made at the GEF meeting.

China has also ramped up efforts to develop the villages located along borders with India Bhutan and Nepal with infrastructure development and preferential policies.

Beijing and Thimphu held their 13th Expert Group Meeting (EGM) on the Bhutan-China Boundary issues in Beijing in August this year.

Dorji’s current visit to Beijing comes in the backdrop of remarks by Bhutanese Prime Minister Lotay Tshering in March this year that Bhutan hopes to complete the demarcation of territories with China within one or two meetings.

“We do not encounter major border problems with China, but certain territories are not yet demarcated. We still have to discuss it and draw a line,” Dr Tshering told Belgian newspaper La Libre in an interview published during his visit to Brussels in March this year.

As Tshering’s remarks raised concerns in India considering the close ties, Bhutan King Jigme Khesar Namgyel Wangchuck visited New Delhi in April and met Prime Minister Narendra Modi during which the two leaders resolved to expand the close ties between the countries.

Briefing the media on the talks between Prime Minister Modi and Bhutan King, Foreign Secretary Vinay Mohan Kwatra said the two countries share ties characterised by trust, goodwill, and mutual understanding.

India and Bhutan remain in close touch relating to our shared interest, including security interest, he said.

After his interview stoked controversy, Tshering told The Bhutanese newspaper that he had said nothing new in his statements to the Belgian paper on Doklam and the Bhutan-China boundary talks. “I have said nothing new and there is no change in position,” he said.

In his talks with Dorji on Monday, Wang also said China always prioritises neighbourhood diplomacy in its overall diplomacy and adheres to the principle that all countries, big or small, are equals.

The Chinese press release also said Dorji expressed Thimphu’s backing for President Xi Jinping’s Global Security Initiative (GSI), the Global Development Initiative (GDI) and the Global Cultural Initiative (GCI) to further Beijing’s strategic initiatives.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)