(Feature Image: Stretch of Punatsangchu River that will be diverted through the tunnel when the dam is commissioned Photo: SANDRP)

Puncturing the prevalent notion about India Bhutan Cooperation on hydropower projects, there is news this week (in fact the news on this score has been coming for more than a couple of years, but Indian media seems to be practicing a self-imposed ban on putting out such stories – but that is another story as they say) that hydropower projects have been stalled, delayed, reconfigured, and even cancelled in Bhutan. This is broadly in line with the increasing economic non viability of hydropower projects.

Kuensel, Bhutan’s national newspaper, has reported about such projects quoting the National Council recommendation to the government of Bhutan to expedite the decisions about the stalled projects like the massive Punatasanchchu-I HEP and the Kholongchu HEP. It has also reported that the government of India conveying to Bhutan that India has sufficient electricity supplies, suggesting that the proposed Nu 200 Billion Sunkosh Hydropower project may not have any definite dateline and hence likely to not go forward. The happenings at the geologically unstable site selection for Punatsanchchu project involving India’s Central Water Commission, Wapcos and Geological Survey of India among others is in fact major scandal and how the whole issue has been dealt with so far. The happenings at the Kolongchu HEP being executed by the SJVN (erstwhile Sutlej Jal Vidhyut Nigam Ltd) as the first ever joint venture project in Bhutan in terms SJVN not giving the promised contracts to Bhutanese companies also does not bode well for Joint Venture projects in future. Both Punatsanchchu and Kholongchu HEPs are stalled and delayed for long, increasing the cost of the projects and power from the projects. While all this is broadly in line with increasing economic non viability of hydropower projects, a lot of this can be avoided by increasing transparency and accountability in governance of these projects.