• India and Bhutan have signed a memorandum of understanding (MoU) for cooperation in the environment sector.

• Union Environment Prakash Javadekar and Tandi Dorji, Bhutan’s Minister of Foreign Affairs and chairperson of the National Environment Commission, signed the MoU during a virtual meeting.

• The MoU will open new vistas of bilateral cooperation in the areas of climate change, waste management, etc.

• The MoU between India’s ministry of environment and Bhutan’s National Environment Commission will strengthen technological, scientific and management capabilities, and expand the areas of cooperation in the field of environment to promote a mutually beneficial partnership.

India-Bhutan relations

• The basic framework of IndiaBhutan bilateral relations is the Treaty of Friendship and Cooperation signed in 1949 between the two countries and revised in February 2007. 

• Diplomatic relations between India and Bhutan were established in 1968 with the establishment of a special office of India in Thimphu.

• The government of India has consistently supported the socio-economic development of Bhutan. Hydropower cooperation between the two countries is an example of win-win cooperation. 

• India has been extending economic assistance to Bhutan’s socio-economic development since the early 1960s when Bhutan launched its Five Year Plans.

• Mutually beneficial hydropower cooperation with Bhutan forms the core of bilateral economic cooperation. For Bhutan, hydropower development continues to be a vital catalyst for socio-economic development. The ongoing cooperation between India and Bhutan in the hydropower sector is covered under the 2006 bilateral agreement for cooperation and its protocol signed in 2009. Four hydroelectric projects (HEPs) totaling 2,136 MW are already operational in Bhutan and are supplying electricity to India.

• Two hydroelectric projects, 1200 MW Punatsangchhu-I, 1020 MW Punatsangchhu-II in inter-governmental mode and Kholongchu HEP (600 MWs) under the joint venture mode are under various stages of implementation. 

• India has committed financial support of Rs 4,500 crore for the 12th Five Year Plan (FYP) of Bhutan (2018-23), comprising Rs 2,800 crore for Project Tied Assistance, Rs 850 crore for High Impact Community Development Projects and Rs 850 towards programme grant. 

• India has also committed a ‘Transitional Trade Support Facility’ of Rs 400 crore, to be provided over the 12th FYP of Bhutan. 

• Around 600 big and small projects in the areas of infrastructure development, roads and bridges, industries, agriculture, e-governance, community development projects like irrigation channels, farm roads, block connectivity roads, basic health units, etc have been identified by the two sides and are at various stages of implementation.

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