Hydropower as a Catalyst for Regional Cooperation: The Case of India and Bhutan

Trans-boundary rivers flowing through Bhutan, Nepal, India and Bangladesh provide a unique opportunity to improve the standards of living of the largest concentration of absolutely poor people in the world through partnerships and collaboration. Bhutan and India have developed mutually beneficial and highly successful long-term cooperation based on Bhutan’s vast hydro-power potential. Within this model, India has supported the development of mega projects both financially and technically and has assured purchases of the surplus power generated in the country. The available electricity serves India’s growing needs for cheap power. For Bhutan, the effective use of water resources has proven to be the key strategic success factor for socio-economic development and progress, as it has provided for the necessary resources to pay for a significant part of its social and other development investments. The project aims at studying the India-Bhutan cooperation model, under-researched at present in spite of its importance to improve the socio-economic conditions in the region, and the potential it has for implementation in other countries in South Asia.