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India and Bhutan have been collaborating on hydroelectric power projects since the 1960s.

But the
Cooperation between these two countries in the hydro-power sector, begun in 1988with the first project
of Chukka hydropower plant. It had proved to be the backbone of the Bhutanese economy as it
contributed more than 35 percent of Bhutan’s revenues. In this way, Bhutan has a significant amount of
hydroelectric potential, which India has helped to develop.

During the period 1998 to 2007, two following projects were commissioned between these two
countries :

• Tala Project
• Kuricchu plant
Both projects were built by India.

Then again in April 2014, these two countries signed Inter-governmental Agreement on four hydropower
projects which are following:

• Kholongchu
• Bunakha
• Wangchhu and
• Chamkharchhu-I.

Through these projects India also receives a share of the electricity generated .The collaboration has
been beneficial for both countries, with Bhutan earning revenue from the sale of electricity and India
receiving a reliable source of clean energy.

India and Nepal have been collaborating on the Arun -3 Hydroelectric Project . It is being developed by
the Sutlej Jal Vikas Nigam (SJVN) a joint venture of the Government of India and the government of
Himachal Pradesh. The project is located in the SanKhuwasabha district of Nepal and it is expected to
generate 3859 million units of electricity per year. The project is expected to be completed by 2023.

The 900 MW Upper Karnali Hydroelectric Project is being developed by GMR Energy Limited, an Indian
infrastructure company. The project is located in the Surkhet and Dailekh districts of Nepal, and it is
expected to generate 4,000 million units of electricity per year. The project is expected to be completed
by 2025.

The 600 MW Kholongchhu Hydroelectric Project is being developed by SJVN Limited, in partnership with
the Druk Green Power Corporation, a Bhutanese company. The project is located in the Trashiyangtse
district of Bhutan, near the border with India. The project is expected to generate 2,569 million units of
electricity per year. The project is expected to be completed by 2025.

The 900 MW Pancheshwar Multipurpose Project is being developed by the Governments of India and
Nepal. The project is located on the Mahakali River, which forms the border between India and Nepal.
The project is expected to generate 8,700 million units of electricity per year, and it will also provide
irrigation, flood control, and other benefits. The project is expected to be completed by 2030.

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