Punatsangchhu-II Hydropower Project

Punatsangchhu-II Hydropower Project: A Crucial Component of India-Bhutan Cooperation

The Punatsangchhu-II Hydropower Project (P-II HEP) is one of the most significant hydropower ventures in Bhutan, symbolizing the strong bilateral relationship between India and Bhutan. Hydropower development in Bhutan has been a cornerstone of this partnership, with India playing a pivotal role in funding and technical collaboration. The project is part of Bhutan’s strategy to harness its vast hydropower potential, which is central to its economic development and clean energy generation.

This eBook explores the Punatsangchhu-II Hydropower Project in detail, including its history, technical aspects, challenges, and importance in India-Bhutan relations. It is particularly relevant for UPSC aspirants under India’s Foreign Relations, Energy Security, and Sustainable Development themes.

Introduction to Punatsangchhu-II Hydropower Project

Location: Punatsangchhu River, Wangdue Phodrang District, Bhutan.
Capacity: 1020 MW.
Cost: Estimated at INR 7,290 crore (initially); revised due to delays and challenges.
Commissioning: Expected by 2025 (initially planned for 2017).

The Punatsangchhu-II is one of several projects under Bhutan’s ambitious plan to generate 10,000 MW of hydropower by 2023. It complements the Punatsangchhu-I Hydropower Project (1200 MW) located upstream, both of which contribute significantly to Bhutan’s power generation and export capacity.

Historical Context

India-Bhutan Hydropower Cooperation

1961: India and Bhutan began cooperation in hydropower with the Chukha Hydropower Project.
2006: Bhutan and India signed an agreement to develop 10,000 MW of hydropower capacity in Bhutan by 2023.
Punatsangchhu Projects: Among the flagship projects identified under this agreement, Punatsangchhu-II is a key venture.

Strategic Importance

Bhutan exports around 70% of its electricity to India, earning significant revenues.
India supports Bhutan’s hydropower development through financing, technical expertise, and power purchase agreements, ensuring mutual benefits.

Technical Specifications

Dam Type: Concrete gravity dam.
Height: Approximately 86 meters.
Powerhouse: Underground, housing six turbines of 170 MW each.
Annual Generation: Estimated at 4000 GWh (Gigawatt-hours).
Infrastructure Support: Includes roads, transmission lines, and construction facilities.

The Punatsangchhu-II project employs advanced construction techniques, reflecting a mix of Indian and Bhutanese engineering expertise.

Economic and Environmental Significance

Economic Significance

Revenue Generation for Bhutan
- Hydropower contributes over 25% of Bhutan’s GDP and 40% of government revenue.
- Electricity exports to India are a significant source of foreign exchange earnings.
Employment Opportunities
- Provides jobs for Bhutanese workers and boosts the local economy through infrastructure development.
Energy Export to India
- Strengthens India’s clean energy portfolio and meets rising electricity demand in India’s northeastern region.

Environmental Significance

Clean Energy Production
- Helps Bhutan and India transition toward low-carbon energy sources.
- Supports India’s commitment to Paris Agreement targets by sourcing renewable energy.
Sustainable Development
- Aligns with Bhutan’s Gross National Happiness (GNH) philosophy, balancing economic growth with environmental preservation.

Challenges Faced by Punatsangchhu-II Project

1. Geological Issues

The project has encountered geological instability, including landslides and slope collapses, delaying construction and escalating costs.

2. Cost Overruns

Initial estimates have been revised multiple times, with costs surging to over INR 10,000 crore due to delays and technical hurdles.

3. Environmental Concerns

While hydropower is a renewable energy source, large dams can disrupt ecosystems, impact aquatic life, and displace local communities.

4. Cross-Border Dependence

Bhutan’s heavy reliance on India for financing, technology, and market access makes it vulnerable to changes in Indian policy or demand.

5. COVID-19 Pandemic

The global pandemic caused significant delays in the supply of materials, labor shortages, and disrupted timelines.

India-Bhutan Relations and Hydropower

1. Hydropower as the Cornerstone

Hydropower projects like Punatsangchhu-II underscore the depth of India-Bhutan cooperation.
India has financed several projects under a mix of grants and loans.

2. Strategic Cooperation

Bhutan’s role as a provider of clean energy enhances India’s energy security.
Strengthens India’s diplomatic relations in South Asia, countering the influence of other regional powers like China.

3. Regional Connectivity

Projects like Punatsangchhu-II pave the way for regional energy grids, enhancing South Asia’s energy connectivity.

Relevance for UPSC Aspirants

1. Energy Security (GS Paper III)

Hydropower’s role in meeting India’s renewable energy targets.
Cross-border energy partnerships as a strategy for regional energy security.

2. Environment and Climate Change

Hydropower as a clean energy solution.
Balancing energy needs with environmental sustainability.

3. International Relations (GS Paper II)

India’s role in Bhutan’s development.
The importance of hydropower projects in strengthening bilateral ties.

4. Governance and Infrastructure Development

Challenges in executing large infrastructure projects.
The role of international cooperation in infrastructure financing and management.

5. Essay Topics

“Hydropower as a Catalyst for Regional Cooperation in South Asia.”
“Balancing Economic Development and Environmental Sustainability in Hydropower Projects.”

Future Prospects

1. Expanding Hydropower Capacity

Bhutan is likely to continue developing hydropower projects to meet its target of 10,000 MW capacity.
Projects like Punatsangchhu-II will serve as a model for future ventures.

2. Enhancing Regional Energy Security

Strengthening the India-Bhutan Energy Partnership could lead to greater integration of South Asia’s energy grid.

3. Leveraging Renewable Energy

Hydropower’s potential to replace fossil fuels aligns with global efforts to combat climate change.

4. Addressing Challenges

Investments in advanced geological studies and construction technology can mitigate risks in future projects.
Focus on minimizing environmental impacts to ensure long-term sustainability.

Conclusion

The Punatsangchhu-II Hydropower Project is a testament to the robust partnership between India and Bhutan, with far-reaching implications for energy security, economic development, and environmental sustainability. While the project has faced challenges, its successful completion will mark a milestone in regional cooperation and renewable energy production.

For UPSC aspirants, understanding the Punatsangchhu-II Hydropower Project provides insights into India’s foreign relations, energy policies, and sustainable development strategies. It exemplifies how transboundary partnerships can address shared challenges and achieve mutual goals, making it an essential case study for holistic development and regional diplomacy.

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