AGP Executive Report

Skills and Infrastructure: Bhutan’s Royal Institute of Management launched a Digital Skills Academy and construction management programme to strengthen workforce capabilities and project delivery. India-Bhutan Funding: India transferred Nu 2.9 billion for 13th Five Year Plan projects, including work in infrastructure, renewable energy, education and healthcare. Energy: Electricity production rose 40% last year and exports to India nearly 45%; industrial power use also climbed 26%, while oil imports remained high. ANDRITZ will equip the new Khorlochhu hydropower plant. Investment and Costs: Bhutan has approved Nu 329.16 billion in foreign investment commitments. The government has paused a proposed electricity tariff revision for a sector-wide cost review and set aside Nu 400 million to support low-voltage consumers. Agriculture: Haa is set to host Bhutan’s first flow-through decoupled aquaponics prototype.

Skills and Construction: Bhutan’s Royal Institute of Management launched a Digital Skills Academy and Construction Management Programme to build digital capability and improve infrastructure project delivery. Development Funding: India handed Bhutan Nu 2.9 billion under the 13th Five Year Plan, supporting projects in education, healthcare, digital skills, infrastructure and renewable energy. Power and Industry: Bhutan’s electricity production rose 40 per cent last year, while exports to India climbed nearly 45 per cent. Industrial electricity use also grew 26 per cent, even as oil imports remained high. Agritech: Haa will host Bhutan’s first flow-through aquaponics prototype, linking rainbow trout farming with soilless crop production to reuse water and nutrients. Energy Costs: The government has paused a proposed electricity tariff revision for a sector-wide cost review and set aside Nu 400 million to support low-voltage consumers.

Energy: Bhutan’s electricity generation rose 40% to more than 16,300 GWh, with exports to India up nearly 45%. But oil imports also climbed: 345,000 kilolitres, including sharp increases in petrol and diesel, underscoring the transport sector’s reliance on imported fuel. Public Investment: India transferred Nu 2.9 billion for Bhutan’s 13th Five Year Plan, supporting projects in infrastructure, education, healthcare, digital skills and renewable energy. Business Climate: Two candidates barred from the upcoming BCCI president election say eligibility rules were unclear and unevenly applied, raising concerns over the chamber’s election process. Hydropower: ANDRITZ will supply turbine-generator units for the 600 MW Khorlochhu project, expected to produce about 2.524 TWh of renewable power annually. Investment: Bhutan has approved FDI projects worth Nu 329.16 billion, while the government has paused an electricity tariff revision and set aside Nu 400 million to support low-voltage consumers.

Energy: Bhutan generated more than 16,300 GWh of electricity last year, up 40%, as exports to India rose nearly 45%. Industrial use also climbed 26%, but oil imports remained high, underscoring the challenge of cutting transport’s fossil-fuel dependence. Investment: India handed Bhutan Nu 2.9 billion for 13th Five Year Plan projects spanning infrastructure, education, healthcare, digital skills and renewable energy. Separately, Bhutan has secured Nu 329.16 billion in foreign investment commitments. Hydropower: ANDRITZ will supply four turbine-generator units for the 600 MW Khorlochhu project, expected to produce 2.524 TWh annually. Trade and agriculture: India and Bhutan are exploring Brahmaputra waterways and Assam’s Jogighopa terminal as routes to improve cargo access to global markets. Haa will also host Bhutan’s first decoupled aquaponics prototype, pairing trout farming with soilless crop production. Power costs: The government has paused an electricity tariff revision for a sector-wide review and set aside Nu 400 million to support low-voltage consumers.

Development Finance: India handed Bhutan Nu 2.9 billion under the 13th Five Year Plan for projects in education, healthcare, digital skills, infrastructure and renewable energy. Clean Energy: ANDRITZ will supply four turbine-generator units for the 600MW Khorlochhu hydropower project, expected to generate 2.524TWh a year. Agriculture: Bhutan’s first flow-through aquaponics prototype, planned for Haa, will combine trout farming with soilless crop production, reusing treated water and nutrients. Investment: FDI commitments reached Nu 329.16 billion by October 7, with services, hospitality, manufacturing and agriculture among the sectors attracting projects; the government targets Nu 500 billion by 2029. Business Costs: The government has paused electricity tariff revisions for a sector-wide cost review and allocated Nu 400 million to support low-voltage consumers. MoICE is also preparing recommendations for a proposed 50% mobile-data tariff cut. Trade & Connectivity: India and Bhutan discussed using the Brahmaputra and Jogighopa terminal to improve cargo links, while Bhutan is pursuing longer-term fixes and faster responses to disruptions on the Wangdue-Thimphu highway.

Hydropower: ANDRITZ will supply four turbine-generator units for Bhutan’s 600 MW Khorlochhu project, expected to produce 2.524 TWh annually. Tourism: Bhutan won 11 South Asian Travel Awards, including Best Leading Heritage Destination for a second consecutive year. Trade Links: Bhutan and India are exploring Brahmaputra waterways and the Jogighopa terminal as a route to global markets. Investment: Licensed and in-principle approved FDI projects total Nu 329.16 billion—65.8% of the Nu 500 billion target, though this is not capital already invested. Business Costs: The government has paused electricity tariff changes for a cost review and set aside Nu 400 million to cushion low-voltage consumers; MoICE is also preparing recommendations for a 50% mobile data tariff cut. Infrastructure: MoIT is strengthening drainage and slope protection on the Wangdue–Thimphu highway to reduce weather-related disruption. Food Prices: Egg trays in Thimphu have climbed to Nu 560–600, raising pressure on household budgets.

Regional Trade: Bhutan and India are exploring stronger trade links, including use of the Brahmaputra’s National Waterway-2 and Jogighopa terminal to move Bhutanese cargo towards global markets. Investment: Bhutan has licensed or approved Nu 329.16 billion in FDI projects—65.8% of its Nu 500 billion target for 2029—but approvals are not yet capital deployed. Power Costs: The Government has paused electricity tariff changes pending a cost review and allocated Nu 400 million to cushion low-voltage consumers, including small businesses. Energy Projects: Druk Green Power and Adani Power have agreed to develop the 770 MW Chamkharchhu-I hydropower project; KEC International also won a contract for a 400 kV transmission line in Bhutan. Trade Barriers: Scrap exporters say the lack of an approved route into India is exposing truckers to extortion and risking livelihoods, as the Government continues talks with India. Food Prices: Egg prices in Thimphu have climbed to Nu 560–600 a tray, with vendors citing higher supplier costs.

Trade Links: Bhutan and India are exploring inland waterways, including the Brahmaputra and Jogighopa terminal, to improve cargo access to global markets. The talks also covered possible links through the Manas and Sankosh rivers. Investment: Bhutan has licensed or given in-principle approval to FDI projects worth Nu 329.16 billion—65.8% of its Nu 500 billion target for 2029. The figure represents approved project value, not capital already invested. Payments and Power: Bhutan recorded 8,621 UPI transactions since September, while authorities work with Indian banks to address failures. The government has also allocated about Nu 400 million to support low-voltage electricity consumers. Energy Infrastructure: Druk Green Power and Adani Power agreed to develop the 770 MW Chamkharchhu-I hydropower project. DGPC also signed a partnership for the 40 MW Parochhu project, while KEC International won an order for a 400 kV transmission line in Bhutan. Services and Tourism: DK Bank received in-principle approval to expand into Abu Dhabi. Gelephu is preparing for around 100,000 visitors to the November 1 raising of 108 chortens, with accommodation and transport arrangements underway.

Trade Connectivity: Bhutan and India are exploring the Brahmaputra waterway and Jogighopa terminal as routes to move Bhutanese cargo toward global markets, with the Manas and Sankosh rivers also under discussion. Investment: Bhutan has licensed or granted in-principle approval to FDI projects worth Nu 329.16 billion—65.8% of its Nu 500 billion target for 2029. The figure is approved project value, not capital already invested. Energy: Druk Green Power and Adani Power have agreed to develop the 770 MW Chamkharchhu-I hydropower project. KEC International also won an order for a 400 kV transmission line in Bhutan, as part of new orders worth Rs 1,030 crore. Digital Finance: More than 8,600 UPI transactions have been completed since September, but payment failures persist at some Indian merchants as banks work on integration. Financial Services: Bhutan’s DK Bank has received in-principle approval to expand into Abu Dhabi.

Gelephu Event Preparations: With registrations at 84,000, authorities are preparing accommodation, transport and safety arrangements for up to 100,000 visitors to the November 1 stupa event. Investment: Bhutan has licensed or given in-principle approval to FDI projects worth Nu 329.16 billion by October 7—65.8% of its Nu 500 billion target, though approvals are not the same as capital invested. Power Projects: Adani Power and Druk Green Power have agreed to develop the 770 MW Chamkharchhu-I hydropower project. Infrastructure Orders: KEC International secured a 400 kV transmission-line contract in Bhutan as part of Rs 1,030 crore in new orders. Digital Finance: DK Bank has received in-principle approval to expand into Abu Dhabi, pending final regulatory clearance. Payments and Power Bills: Bhutan and Indian banks are working to reduce UPI payment failures; 8,621 transactions have succeeded since September. The government has also allocated about Nu 400 million to support low-voltage electricity consumers.

Investment: Bhutan has licensed or granted in-principle approval to FDI projects worth Nu 329.16 billion, 65.8% of its Nu 500 billion target for 2029. Most approvals under the 13th Five-Year Plan are in services, particularly IT and IT-enabled services; approvals do not mean the capital has already been invested. Digital Payments: UPI has processed 8,621 transactions for Bhutanese users since September. Authorities are working with Indian banks to address failures, with four more banks, including SBI, preparing to join. Power Costs: The Government has allocated about Nu 400 million this financial year to support low-voltage electricity consumers as it reviews domestic tariffs. Energy Infrastructure: KEC International secured a 400 kV transmission-line order in Bhutan as part of new orders worth Rs 1,030 crore. Separately, Adani Power and Druk Green Power agreed to develop the 770 MW Chamkharchhu-I hydropower project. Financial Services: DK Bank received in-principle approval to expand into Abu Dhabi, but needs final regulatory clearance before offering services there. Trade Links: At Sagarmanthan, Bhutan and India discussed using National Waterway-2, the Jogighopa terminal, and the Manas and Sankosh rivers to improve Bhutanese cargo access to global markets.

Electricity: The government has set aside Nu 400 million to support low-voltage consumers as it reviews domestic power tariffs. Grid Infrastructure: KEC International’s latest order package includes a 400 kV transmission line in Bhutan, strengthening its return to the market. Hydropower: Adani Power and Druk Green Power have agreed to develop the 770 MW Chamkharchhu-I project, a major addition to Bhutan’s generation pipeline. Finance: DK Bank has received in-principle approval to establish an Abu Dhabi subsidiary, but needs final authorization before offering services there. Trade Links: Bhutan and India discussed using the Jogighopa terminal and regional waterways to improve Bhutanese cargo access to global markets. Agriculture: Climate-smart farming training in eastern Bhutan aims to help communities respond to erratic rainfall, drying water sources and rising pest risks.

Infrastructure Orders: KEC International says its Rs 1,030 crore order haul includes a 400 kV transmission line in Bhutan, strengthening its power-sector ties with the country. Trade Links: At Sagarmanthan, Bhutan and India discussed using National Waterway-2 and the Jogighopa terminal to connect Bhutanese cargo with global markets, alongside possible routes via the Manas and Sankosh rivers. Financial Services: DK Bank has received in-principle approval to establish an Abu Dhabi subsidiary for brokerage, custody, payments and advisory services, but must secure final regulatory permission before starting operations. Hydropower: Druk Green Power and Adani Power signed an agreement for the 770 MW Chamkharchhu-I project, with construction expected to begin in the first half of 2027. Agriculture: Bhutan is training community resource persons in climate-smart farming as erratic weather, water shortages and crop pests challenge farmers in the east.

Finance: Bhutan’s DK Bank has received in-principle approval to establish an Abu Dhabi subsidiary, a step toward offering custody, payments, brokerage and advisory services there. It still needs final regulatory permission. Trade and Logistics: Bhutan and India discussed using National Waterway-2 and the Jogighopa terminal to connect Bhutanese cargo with global markets, alongside possible use of the Manas and Sankosh rivers and maritime training for Bhutanese youth. Clean Energy: Druk Green Power and Adani Power signed a shareholders’ agreement for the 770 MW Chamkharchhu-I hydropower project in Zhemgang. The 49:51 partnership expects construction to start in the first half of 2027. Agriculture: Community resource persons from 21 gewogs are being trained in Monggar to help farmers respond to erratic rainfall, water shortages and rising pest and disease risks. The programme also covers market access, value addition and crop diversification.

Finance: Bhutan’s DK Bank has received in-principle approval to establish an Abu Dhabi subsidiary offering brokerage, custody, payments and advisory services. It still needs final regulatory permission before starting operations. Investment: Adani Power and Druk Green Power signed an agreement to develop the 770 MW Chamkharchhu-I hydropower project in Zhemgang, with construction expected to begin in the first half of 2027. US ties: US Ambassador Sergio Gor met Bhutan’s King and Prime Minister to discuss investment, innovation and cooperation, including opportunities linked to Gelephu Mindfulness City. Tourism: Gelephu hotels and guesthouses are seeing heavy demand ahead of the November 1 gathering for the 108 stupas, with around 100,000 visitors expected and many rooms already booked.

Hydropower: Bhutan’s Druk Green Power Corporation and Adani Power signed an agreement for the 770 MW Chamkharchhu-I project in Zhemgang. The 49:51 partnership is the companies’ second major hydropower venture and part of a wider 5,000 MW development plan. Construction is expected to start in the first half of 2027. Productivity: The Asian Productivity Organization’s 2026 databook includes Bhutan in its full productivity accounts for 28 economies, with data through 2024 and projections to 2035. Consumer Regulation: The Bhutan Food and Drug Authority has proposed banning vaping products and requiring authorisation for tobacco and nicotine imports, as Parliament considers amendments to the Tobacco Control Act. Agriculture and Infrastructure: Solar-powered irrigation is being explored for farms in Tili and Yebisa, while Bhutan is looking to develop hybrid vegetable seeds and expand local mustard-oil production. Gelephu Mindfulness City Authority has also awarded a construction contract for Gelephu International Airport.