- D1: India-Nepal agreements during Modi visit
- D2: Power Trade agreement (PTA) with Nepal
- D3: India-Bhutan: Hydropower sharing
- D4: Indian Intervention in Bhutan Politics
D1: Power Trade agreement (PTA) with Nepal
Happened in September 2014, after Prime Minister Narendra Modi came back from Nepal.
- Now any Nepali public or private entity can sell electricity to India.
- India wanted to setup a joint venture Company with Nepal- for trading electricity. But Nepali Government did not agree.
- India even offered to help developing Nepal’s hydro-electricity power but their political factions disagreed.
- Modi has earlier said- Nepal has immense hydropower and just be selling electricity to India, they can become a developed country(!)
Includes | Doesn’t |
---|---|
electricity power trade, cross-border transmission, inter-connection and grid-connectivity | Indian investment in Nepali power sector. |
Power trade agreement | Power Development pact |
---|---|
Between respective Governments of Nepal and India | Between GMR India with Nepali Government to develop Karnali hydropower. |
Signed with consensus of Maoists and other political factions of Nepal. | Nepali maoists don’t like this, not one bit so they’ve began protests. |
D2: India-Nepal agreements during Modi visit
Infrastructure |
|
Border |
|
Energy |
|
Transport |
|
3 MoU |
|
Trade | India will remove quantitative restrictions on Nepalese products. |
Misc. |
|
D3: India Bhutan Love n Hate over Hydroprojects
Topic in news because during April 2014, India and Bhutan signed a new Inter-Governmental Agreement for hydro projects.
Sequence of Events
- 2006: India Bhutan signed agreement. India promised to develop 10,000 MW hydropower in Bhutan. Bhutan promised they’ll export surplus electricity to India by 2020.
Chukha project | 336 MW |
---|---|
Kurichu project | 60 MW |
Tala project | 1020 MW |
Total | 1416 MW |
Punatsangchu-I | 1200 MW |
---|---|
Punatsangchu-II | 1020 MW |
Mangdehchu | 720 MW |
Total | 2940 MW |
Kholongchu project | 600 MW |
---|---|
Bunakha project | 180 MW |
Wangchu project | 570 MW |
Chamkarchu project | 770 MW |
Total | 2120 MW |
numbers not important but these are all “run of the river” type dam. They don’t store water in reservoirs, hence less problem of siltation and ecological damage.
D4: Indian Intervention in Bhutan Politics
- Bhutanese economy is based on agriculture, forestry and tourism. But major of GDP comes from construction and hydro-electricity.
- India is the only “importer” of Bhutanese Hydroelectricity.
- We also supply them Bhutan laborers, food imports and defense equipment.
- But relations turned sour during previous PM Jigme Thinley’s inclination towards China.
Chinese Angle
- 2008: China begins Border settlement talks with Bhutan.
- China asked Bhutan to give 250 sq.km from North Bhutan. And offered to give 500 sq.km area from China in return.
- But this smaller 250 sq.km area is in Chumbi valley- @tri-junction of Bhutan, India and China.
- If China sets up base here, they can easily penetrate India and cut off North Eastern India from rest of the country.
- Fortunately Bhutan government declined the offer.
- 2012: RIO+20 summit. Chinese leaders again made offer PM Jigme Thinley , he responded positively.
India alarmed, begins “teaching lesson” to Bhutan
- Until now we gave “Aid/donation” to Bhutan for building their Hydroplants. But now we stopped giving free aid. Only “loans” for Bhutan.
- Stopped kerosene and cooking gas subsidy.
- Subprime crisis=> declined tourists. GDP stagnates. No money to repay Indian loans.
- So far Bhutan PM completed only 3 Hydro project = not sufficient production to cover the costs.
- Cannot give any more subsidy on Kerosene and cooking gas =>Bhutanese juntaa protests. 2013 General election in Bhutan, they vote new Prime Minister Tshering Thogbay.
PM Tshering Thogbay visits India & promises “I’ll remain in my aukaat, will not take any decision against Indian security interests.” India is satisfied, and stops teaching lesson
- Announced Rs.500 crore economic aid. (aid=don’t have to repay loan principal / interest.)
- Restored subsidy on kerosene and cooking gas
- Promised additional HEP projects with help of Indian public sector undertaking.
Fast forward to April 2014: we signed agreement for Chukha, Kurichu, Tala projects.
Visit Mrunal.org/Diplomacy for entire list articles on Diplomacy & International relations (IR) for Mains GS2 paper of UPSC Civil service IAS/IPS Exam.
HI Mrunal,
You are crazy(Cool) & amazing person by heart and mind . Such good localization of topics to India audience .
God should bless you more with great health .
Thanks,
What would be impact on India ,if Bhutan becomes more developed and interdependence for India is reduced .
Does India have solution or agreement to sign today with Bhutan not to violate the land handover to china in future political journey ?