India is building a satellite tracking and data reception centre in the Himalayan state of Bhutan that will also serve to counter a similar Chinese facility in the region. India is currently helping its friendly countries to set up ground stations for effective communication, better governance and so on through satellite services.
China has already set up an advanced satellite tracking centre and astronomical observatory at Ngari in Tibet Autonomous Region – about 125 kilometres away from the Line of Actual Control (LAC).
Bhutan maintained good bilateral relationship with India during the 72-day face-off between the Indian Army and People’s Liberation Army at Doklam Plateau in western Bhutan in June-August, 2017.
On 28 December, Prime Minister Dr. Lotay Tshering took his first overseas visit after assuming the office in November 2018. It was the the Golden Jubilee year of the establishment of formal diplomatic relations between India and Bhutan.
India will also provide assistance worth Rs 4500 crores to Bhutan’s for the 12th five year plan for the period 1 November 2018 to 31 October 2023. Bhutan has concluded the implementation of the 11th Five Year Plan including development projects undertaken with GoI assistance. In addition to that India has extended a transitional Trade Support Facility of INR 400 Crore over a period of five years to strengthen bilateral trade and economic linkages.
PM Modi said that the construction of the ISRO's “ground station” in Bhutan would be completed soon. “Space science is the new dimension of our cooperation (with Bhutan). I am happy that Ground Station being built by ISRO in Bhutan to reap the benefits of the South Asian Satellite is soon going to be completed,” he told media after a meeting with new Bhutan Prime Minister Lotay Tshering at Hyderabad House in New Delhi. Also he added “With the completion of this project, Bhutan will get help in tasks such as weather information, tele-medicine and disaster relief in the far flung areas of the country.”
One of the major highlight of the visit was the commitment to jointly develop 10,000 MWs of hydropower generating capacity in Bhutan and in this regard discussed the Sankosh Hydropower Project.
India has been assisting Bhutan for the development of the 720 MW Mangdechhu hydro-power project, and it is near completion for the early commissioning. India also agreed on the tariff for the export of surplus power from Mangdechhu project in Bhutan to India. a major breakthrough that will lead to the sustainable revenue generation.
Bhutan is a water rich country and hydropower sector is an important contributor to its economy. Bhutan has a capacity to generate about 30,000 megawatts of hydroelectricity every year. Out of this, only about 1,616 megawatts are currently being generated. The export of hydropower energy generates around 40 per cent of the Bhutan’s revenue and about 25 percent of the GDP.