India and Bhutan intend cementing their ties further by signing four memoranda of understanding for hydel projects, besides a pact on setting up a superspeciality hospital on the lines of the All-India Institute of Medical Sciences, during King Jigme Khesar Namgyel Wangchuck’s visit beginning Monday.
This is his first maiden visit to a country after his coronation as the fifth King in November last year.
However, an agreement on laying of a rail line that would have provided Bhutan a more enduring and economical trade link with countries in the region is not on the cards owing to land acquisition issues in some tea gardens on the Indian side, diplomatic sources here said.
The MoUs on initiating the detailed project reports (DPRs) on the hydel projects will be inked under the 60-year umbrella agreement signed in 2006 and is seen as a win-win arrangement for both sides. Originally India planned to import 5,000 MW from Bhutan by 2020 but this has been doubled under an accelerated hydel power development agreement.
According to Indian sources, over 60 per cent of Bhutan’s gross domestic product accrues from sale of surplus power from three hydro power stations – Kurichu, Chukha and Tala – and the generation will rise exponentially once work on four more - Punatsangchu, Wangchu, Bunakha and Sankosh - is over. During the King’s visit, the MoUs will be signed on initiating DPRs for the Amochhu (620 MW), Kuvi-Gongi (1800 MW), Kholongchhu (486 MW) and Chamkarchu-I (670 MW) projects.
He will interact with the political leadership including President Pratibha Patil, Vice-President Hamid Ansari, Prime Minister Manmohan Singh, United Progressive Alliance Chairperson Sonia Gandhi and External Affairs Minister S. M. Krishna.
