AGP Executive Report

Renewables Policy: Bhutan’s National Assembly unanimously adopted the Renewable Energy Tax Exemption Bill 2026, sending it to the National Council for further deliberation. Hydropower Trade: UPERC approved a 30-year, 511 MW long-term hydropower import plan from Bhutan’s Khorlochhu Hydro Power Station (KHPL) to Uttar Pradesh at a flat INR 6.75/unit tariff at the Indo-Bhutan border. Climate & Forests: Bhutan’s GEF-backed project on climate-resilient forests and agricultural landscapes was praised at the GEF Council in Samarkand, with reported gains in food availability and strengthened conservation corridors. Digital Land Security: A new digital consent system is being rolled out to reduce fraudulent land transactions and strengthen property rights using Bhutan’s National Digital Identity platform. Urban Construction Controls: Haa Dzongkhag imposed a temporary construction moratorium inside the Haa Thromde boundary while it reviews and updates urban development plans and regulations. Social Forestry: Bhutan marked Social Forestry Day with tree planting and community-led conservation, reaffirming its long-standing forest cover and carbon-negative stance. Tech for Development: Indian space firms showcased satellite-based solutions for Bhutan’s disaster risk reduction, hydropower management, forestry and climate resilience during an IN-SPACe industry visit.

Renewables Policy: Bhutan’s National Assembly unanimously adopted the Renewable Energy Tax Exemption Bill 2026, sending it to the National Council for further deliberation—aimed at easing costs for clean power projects. Forestry & Community Stewardship: Bhutan marked Social Forestry Day (June 2) with tree-planting and community-led conservation, reinforcing the country’s long-standing push to keep forests at least 60% of land cover and maintain its carbon-negative status. Land Administration Digitisation: A new digital consent system for land transactions was launched using Bhutan’s National Digital Identity platform, designed to reduce forged signatures, unauthorized deals, and ownership disputes. Animal Welfare Law: The Livestock Bill was introduced in the National Council, with the minister stressing it is about animal welfare, meat-processing standards, food security, biosecurity, and zoonotic disease control—not promoting slaughter. Hydropower Pipeline: India’s UPERC approved a 30-year plan to import 511 MW hydropower from Bhutan’s Khorlochhu Hydro Power Station at a fixed tariff of INR 6.75/unit at the Indo-Bhutan border, supporting peak demand needs. Urban Construction Controls: Haa Dzongkhag imposed a temporary construction moratorium within Haa Thromde as it reviews and updates urban development plans and regulations. Farm Insurance Push: National Council members urged higher subsidies for the Crop and Livestock Insurance Scheme after low uptake, citing farmers’ inability to pay the remaining premium and added GST.

Hydropower Trade: UPERC approved a 30-year, 511 MW long-term power purchase from Bhutan’s Khorlochhu Hydro Power Station (KHPL) to Uttar Pradesh at a fixed INR 6.75/unit tariff at the Indo-Bhutan border, aiming to secure peak summer supply and price certainty. Urban Development: Haa Dzongkhag imposed a temporary construction moratorium inside the Haa Thromde boundary while it reviews and updates town planning rules, including HDCR and a Local Area Plan. Land & Property Systems: Bhutan launched a new digital consent system for land transactions using the National Digital Identity platform, designed to cut forged signatures, unauthorized deals, and ownership disputes. Livestock Policy: The National Council heard the Livestock Bill, with the minister stressing it targets animal welfare, meat-processing standards, biosecurity and zoonotic disease control—not legalising slaughter. Agriculture Insurance Push: NC members urged higher subsidies for the Crop and Livestock Insurance Scheme after low uptake, citing farmers’ inability to pay the remaining premium and added GST. Co-ops & Rural Labour: NC questioned cooperative and farmer group membership rules, warning that “different household” requirements may be hard amid rural population decline. GST Relief Measures: Finance Minister introduced GST (Amendment) Bill 2026 adding exemptions for multiple edible oils, locally sourced butter, more rice categories (including red rice), and motorised wheelchairs. Energy Outlook: Bhutan reiterated a target of 25,000 MW by 2040 (20,000 MW hydropower, 5,000 MW solar), with Nyera Amari I & II moving through DPR work.

Hydropower & Solar Push: Bhutan targets 25,000 MW by 2040 (20,000 MW hydropower, 5,000 MW solar), with Nyera Amari I & II (404 MW) moving through DPR work as the country plans for energy security and climate-proof supply. Urban Planning Freeze: Haa Dzongkhag imposed a temporary construction moratorium inside Haa Thromde while it reviews and updates urban plans and development control rules to protect cultural heritage and improve infrastructure standards. Land Rights Upgrade: A new digital consent system and modernised surveying are being rolled out to reduce forged signatures, unauthorized land deals, and ownership disputes by requiring secure consent via Bhutan’s National Digital Identity platform. Livestock Bill Clarification: The Livestock Bill was introduced with a clear message: it’s about animal welfare, meat-processing standards, biosecurity, and zoonotic disease control—not legalising slaughter. Co-ops & Farmer Groups Bill: National Council discussions flagged practical concerns in the Cooperatives and Farmer Groups Bill 2025, especially minimum membership rules that may be hard in rural areas with population decline. GST Relief for Food: The GST (Amendment) Bill 2026 adds exemptions for more edible oils, locally sourced butter, extra rice categories (including red rice), and motorised wheelchairs to ease household costs. Insurance Uptake Pressure: NC members urged higher subsidies for the Crop and Livestock Insurance Scheme after low enrolment, citing farmers’ inability to pay the remaining premium and added GST burden. Tourism Business Growth: Bhutan’s licensed tour operators rose sharply in 2026, with Thimphu dominating active licences, pointing to renewed momentum as infrastructure and projects like GMC gain traction. Water & Climate Resilience: A GCF/UNDP-backed focus on water security highlights how climate impacts hit rural agriculture first, with gendered burdens from water collection and the need for resilient water systems.

Land & Property Security: Bhutan launched a digital consent system for land transactions, using the National Digital Identity platform to require consent from all relevant parties and cut forged signatures, unauthorized deals, and ownership disputes. Animal Welfare Law: The Livestock Bill was introduced in the National Council, with the minister stressing it aims at animal welfare, meat-processing standards, food security, biosecurity, and zoonotic disease control—not to legalize slaughter. Construction Oversight: Haa Dzongkhag imposed a temporary construction freeze inside the Haa Thromde boundary while it reviews and updates urban plans and development control rules. Urban Infrastructure Reliability: The government said it will keep monitoring the Phuentshogling bypass after repeated road disruptions from landslides and debris during rains. Tourism Growth Signals: Bhutan’s Department of Industry reported 172 new tour operator licenses issued between January and 21 May 2026, bringing active licenses to 1,633, with Thimphu holding over 84%. Energy Pipeline Update: Bhutan is targeting 25,000 MW by 2040 (20,000 MW hydropower, 5,000 MW solar), with Nyera Amari I & II moving through DPR work. Hydropower Exports Watch: Hydropower export earnings fell to Nu 201.2M in early 2026 despite higher generation, while imports and local sales rose. Green Finance: Bhutan’s updated Green Finance Taxonomy (2026/Addendum) is set for phased rollout over three years to guide sustainable lending and reduce greenwashing. Co-ops & Farmer Groups: National Council deliberated the Cooperatives and Farmer Groups Bill 2025, debating minimum membership rules amid rural population decline and labour shortages. GST Relief: The GST (Amendment) Bill 2026 added exemptions for more edible oils, locally sourced butter, extra rice categories, and motorised wheelchairs to ease cost of living. Wildlife Victim Support Framework: MoENR is drafting a National Human-Wildlife Casualty Relief and Accountability Framework after wildlife attacks continue to cause injuries and deaths.

Land & Digital Services: Bhutan launched a new digital consent system for land transactions, using the National Digital Identity platform to reduce forged signatures, unauthorized transfers and ownership disputes, while improving accuracy through a modernised surveying setup. Animal Welfare & Food Security: The Livestock Bill was introduced in the National Council, with the MoAL Minister stressing it aims at animal welfare, meat-processing standards, biosecurity and zoonotic disease control—not a legal basis for slaughter. Construction & Urban Planning: Haa Dzongkhag imposed a temporary construction freeze inside the Haa Thromde boundary while it reviews and updates urban development plans and regulations. Hydropower & Energy Pipeline: Nyera Amari Hydropower Project moved into the DPR phase, as Bhutan also reiterated its long-term push toward 25,000 MW by 2040 (hydropower plus solar). Agriculture Insurance Uptake: NC MPs urged higher subsidies for the Crop and Livestock Insurance Scheme after low enrolment, citing affordability and process hurdles. Co-ops & Farmer Groups: The National Council reviewed the Cooperatives and Farmer Groups Bill 2025, debating minimum membership rules that may be hard for rural communities. Tax & Investment: The National Assembly endorsed Bhutan–Singapore’s double taxation treaty to strengthen investor confidence, including for the Gelephu Mindfulness City vision. Green Finance: Bhutan’s updated Green Finance Taxonomy 2026/Addendum is set for phased rollout to guide sustainable lending and cut greenwashing.

Digital Payments Surge: India’s UPI hit fresh records in May—23.2 billion transactions worth Rs 29.90 lakh crore—fuelled by summer travel and IPL spending, with average ticket sizes continuing to fall as everyday use expands. Hydropower Pipeline: Bhutan is pushing energy security with a 2040 target of 25,000 MW (20,000 MW hydropower, 5,000 MW solar), while Nyera Amari I & II moves into DPR work for the 404 MW project. Tax & Investment Boost: The National Assembly endorsed Bhutan–Singapore’s double taxation treaty, strengthening the legal and fiscal base for Gelephu Mindfulness City and cross-border investment. GST Relief for Households: The Finance Minister introduced the GST (Amendment) Bill 2026 in the National Council, expanding exemptions for edible oils, rice categories, and motorised wheelchairs to ease cost of living. Agriculture Insurance Fix: National Council MPs want higher subsidies for the Crop and Livestock Insurance Scheme after low uptake, citing affordability and claim/admin hurdles. Co-ops Rules Under Review: MPs questioned cooperative and farmer group membership requirements, warning they may be impractical amid rural population decline. Urban Infrastructure Scrutiny: MoIT faced questions on geotechnical testing costs and on Thimphu drainage works meant to cut recurring flooding, while Phuentshogling bypass construction continues to disrupt roads during rains. Wildlife Conflict Support: MoENR is drafting a framework for relief and accountability for victims of human-wildlife attacks, after repeated incidents including elephant attacks. Tourism Business Growth: Licensed tour operators rose to 1,633 active licences by May, with Thimphu dominating—signalling continued recovery and expansion in the tourism services sector.

GMC Investment Boost: Bhutan’s National Assembly endorsed the Bhutan–Singapore double taxation treaty, clearing a key legal step for smoother cross-border business and strengthening the Gelephu Mindfulness City (GMC) investment framework. Tourism Industry Growth: Bhutan’s Department of Industry reported a surge in licensed tour operators, with 172 new licenses issued between January and 21 May 2026, bringing active operators to 1,633; Thimphu leads with 1,381 active licenses. Infrastructure Accountability: MoIT faced questions on whether Thimphu’s infrastructure planning and design systems are strong enough for climate risks, as MPs cited recurring flooding, landslides and drainage failures. Urban Resilience Works: MoIT said Thimphu’s stormwater and roadside drainage upgrades are designed to cut recurring street flooding and overflow issues, based on master plans that factor in climate change. Human-Wildlife Relief Framework: MoENR is drafting a National Human-Wildlife Casualty Relief and Accountability Framework after wildlife attacks continue to cause injuries and deaths, with compensation still not fully operational. Green Finance Rollout: Bhutan’s updated Green Finance Taxonomy 2026/Addendum is set for phased implementation over three years to guide sustainable lending and reduce greenwashing. Hydropower Export Dip: Hydropower export earnings fell to Nu 201.2M in early 2026 Q1 despite higher generation, pointing to export revenue volatility. Hydropower Project Progress: DPR work has started for the 404MW Nyera Amari I and II Integrated Hydropower Project, a priority under the 2024–2029 plan. Co-ops and Farmer Groups Bill: The National Council deliberated the Cooperatives and Farmer Groups Bill 2025, aiming to improve registration, auditing, dispute settlement and accountability for rural economic groups. Digital Payments Context: India’s UPI hit record May levels (Rs 29.90 lakh crore; 23.2 billion transactions), reflecting regional consumer spending momentum that can spill into travel and services demand.

Tax & Investment Architecture: Bhutan’s National Assembly endorsed the double taxation elimination agreement with Singapore, seen as a key legal and fiscal foundation for investor confidence and for the Gelephu Mindfulness City (GMC) push. Urban Safety & Infrastructure: Thimphu’s Structure Plan 2023–2047 geotechnical testing rules drew MP criticism over costs (around Nu 150,000), while MoIT said the requirement is essential for safety in a high seismic risk zone. Flood Resilience: MoIT also clarified that Thimphu’s stormwater and roadside drainage upgrades are meant to cut recurring street flooding and overflow, based on master plans and climate-change rainfall assumptions. Hydropower Pipeline: MPs pressed for more transparency on the Nyera Amari I and II Integrated Hydropower Project as DPR work begins, with concerns over long delays and unclear timelines. Rural Livelihoods & Tourism: Tarayana’s 20th annual fair highlighted climate-resilient rural initiatives and tech-enabled livelihood support, while Chimi Lhakhang tourism continues to expand local handicraft shops and incomes. Energy Transition & Cooking: HAB and Planethos advanced clean cooking efforts in Bhutan through consultations and clean cookstove work. Digital Careers: A training programme in Phuentshogling focused on monetisation skills for young content creators, tackling the gap between online popularity and income. Wildlife Conflict Relief: Bhutan is drafting a human-wildlife casualty relief and accountability framework after compensation mechanisms lag behind the Forest and Nature Conservation Act 2023.

Urban Safety & Costs: Bhutan’s Thimphu Structure Plan 2047 geotechnical testing rules are under fire in Parliament, with an MP saying homeowners may pay nearly Nu 150,000 even for seemingly stable plots; MoIT says the requirement is essential in Bhutan’s high seismic risk environment to catch subsurface hazards. Flood Control in Thimphu: MoIT also defended ongoing stormwater and roadside drainage upgrades, saying they’re based on master plans and climate-change rainfall projections to cut recurring street flooding and overflow. Hydropower Pipeline: Work has started on the DPR for the 404MW Nyera Amari I and II Integrated Hydropower Project, with MPs pressing for clearer timelines and noting past delays. Gelephu Tax Framework: The National Assembly endorsed Bhutan–Singapore’s double taxation elimination agreement, calling it a key legal and fiscal step for investor confidence tied to the GMC vision. Rural Livelihoods & Culture: Tarayana’s 20th annual fair in Thimphu highlights climate-resilient rural livelihoods, while Chimi Lhakhang tourism continues to expand local handicraft shops and income. Skills for New Creators: A training programme in Phuentshogling is helping young Bhutanese content creators improve monetisation and turn online work into sustainable earnings. Regional Defence Link: Bhutan’s participation in India’s PRAGATI 2026 exercise in Meghalaya wrapped up with counter-terrorism drills and interoperability training.

Hydropower Transparency: Bhutan’s 404MW Nyera Amari I and II Integrated Hydropower Project is facing fresh scrutiny in the National Assembly, with MPs asking for clearer public updates after repeated delays and uncertainty over whether it will start (originally Oct 2026, later pushed to Dec 2027). Agribusiness Markets: Tsirang’s dairy farmers are getting steadier income after Tsirang Dairy Product secured a one-year supply deal with Thimphu-based Serkar Dairy, sending about 500 litres of fresh milk daily and easing summer “no market” pressure. Tourism & Handicrafts: Chimi Lhakhang’s tourism boom is expanding Bhutan’s handicraft sector in Barp Gewog, where shop numbers have grown to 40+ and many livelihoods now rise and fall with visitor seasons. Copyright & Creative Industry: Bhutan’s Copyright Act is under pressure as artists and filmmakers push for stronger enforcement during consultations on a Copyright Bill draft, citing piracy, theatre recordings, and AI-facilitated copying. Wildlife Compensation Framework: The government is drafting a National Human-Wildlife Casualty Relief and Accountability framework after MPs highlighted gaps in compensation for victims, following ongoing human-wildlife conflict. Regional Security Drill: Bhutan participated in the PRAGATI 2026 multilateral exercise in Meghalaya, with over 400 troops from 13 nations training on counter-terrorism and counter-insurgency in jungle and semi-mountain terrain.

Hydropower Pipeline: Bhutan is targeting about 25,000MW by 2040, up from roughly 3,600MW today, with 1,724MW currently under construction expected to finish by 2028. Forestry & Exports: Bhutan has started a pilot push toward Forest Stewardship Council (FSC) certification, covering 50,000 hectares in Paro, Bumthang, Wangdue Phodrang and Thimphu, aiming to improve timber traceability and unlock better global market access. Agribusiness Market Linkages: Tsirang’s dairy farmers now have a steadier outlet: Tsirang Dairy Product supplies about 500 litres/day to Thimphu’s Serkar Dairy, turning milk into Greek yoghurts and processed products under a one-year supply deal. Copyright & Creative Industry: Bhutan’s creative sector is calling for a stronger Copyright Bill as piracy and AI-enabled copying threaten film and theatre production economics. Wildlife Conflict Relief: The government is drafting a National Human-Wildlife Casualty Relief and Accountability framework after compensation mechanisms for wildlife-attack victims remain largely unimplemented. Energy Infrastructure: Work has begun on the 404MW Nyera Amari Hydropower Project’s DPR, signaling continued momentum in Bhutan’s power buildout. Tourism & Hospitality: Zhiwaling has joined RARE India’s curated portfolio, spotlighting Bhutan’s heritage-led luxury model.

Competition & Consumer Policy: India’s first Competition Commission of India chair, retired IAS officer Dhanendra Kumar, died after a suspected air-conditioner blast and fire at his Hauz Khas home; police say an electrical inspection is underway and the case is registered under negligence-related sections. Payments & Cross-Border Trade: UPI is expanding beyond India, with active corridors including Bhutan and Nepal—still uneven globally—while travellers are warned about charges, merchant limits, and fraud risks when paying abroad. Agrifood & Rural Markets: Tsirang dairy farmers in Bhutan are getting steadier demand after Tsirang Dairy Product secured a one-year supply deal with Thimphu’s Serkar Dairy, sending about 500 litres of fresh milk daily for Greek yoghurts and other processed products. Copyright & Creative Industry: Bhutan’s creative sector is pushing for stronger copyright enforcement as piracy and AI-assisted copying threaten film and media revenues during consultations on a new Copyright Bill. Forestry & Timber Exports: Bhutan is moving toward Forest Stewardship Council certification, starting with a pilot in Paro, Bumthang, Wangdue Phodrang and Thimphu to improve sustainable timber traceability and access to global markets. Energy Transition: Fuel-price pressure is boosting EV interest in Bhutan, with registrations rising and dealers reporting higher sales, but charging gaps and upfront costs remain barriers. Climate-Resilient Infrastructure: Thimphu’s Dechencholing finally got a flood-resistant bridge after the 2024 flash flood, part of broader satellite-town infrastructure works. Tourism & Hospitality: Rare India added Bhutan’s Zhiwaling to its curated portfolio, highlighting heritage-led luxury and sustainability credentials.

EV Push in Bhutan: Rising fuel prices are driving more EV interest, with registrations up to 1,343 nationwide and April adding 93 new EVs; the government also plans to procure 99 EVs and 45 electric buses. Water Stress Watch: Bhutan’s water sources are drying and flash floods are becoming less predictable, with the National Council reviewing watershed pressures tied to climate variability, development, and institutional gaps. Agriculture Exports: Bhutan exported 10,975 MT of primary farm products in Jan–Apr 2026, led by oranges (8,012 MT) and arecanut (1,254 MT) to India and Bangladesh. Trade Corridors Stalled: Key export routes for southern Bhutan remain held up pending India’s approvals, including the Golakganj–Sonarhat land customs corridor and Haldibari–Chilahati rail connectivity. Forestry for Global Markets: Bhutan is moving toward Forest Stewardship Council certification, starting with a pilot covering 50,000 hectares to improve sustainable timber access. Dairy Market Link: Tsirang dairy farmers now have a steadier summer outlet after a supply deal with Thimphu’s Serkar Dairy, sending about 500 litres daily for processed products. Clean Energy Diplomacy: India and Germany highlighted industrial green transition cooperation, focusing on decarbonisation and sustainable supply chains. Tourism & Heritage Business: Rare India added Bhutan’s Zhiwaling to its curated hospitality portfolio, spotlighting heritage craftsmanship and sustainability credentials.

Copyright & Creative Industries: Bhutan’s Copyright Act consultation is pushing artists and filmmakers to demand stronger enforcement as piracy and AI-made content keep eroding creators’ income. Dairy & Rural Markets: Tsirang’s dairy farmers now have a steadier summer outlet after a one-year supply deal with Serkar Dairy in Thimphu, feeding processed products like Greek yoghurts. Forestry & Timber Trade: Bhutan is moving toward Forest Stewardship Council certification, starting with a pilot in Paro, Bumthang, Wangdue Phodrang and Thimphu to improve sustainable timber traceability and global market access. Water Security: The National Council reviewed climate-resilient watershed management, warning that many Bhutan water sources are drying and watersheds face pressure from climate variability, development and institutional gaps. EV Transition: Fuel prices are driving EV interest, with registrations rising and government plans to procure more electric vehicles and buses, though charging gaps remain a drag. Agriculture Exports & Trade Logistics: Bhutan exported 10,975 MT of primary farm products in Jan–Apr 2026, led by oranges and arecanut, while key southern trade corridors still wait on India’s approvals. Energy & Fiscal Pressure: The Royal Audit Authority flagged Bhutan’s fuel price support scheme as a growing fiscal burden, urging targeted subsidies and tighter monitoring. Hospitality & Tourism Value Chain: Rare India added Zhiwaling to its curated portfolio, spotlighting Bhutanese heritage craftsmanship and sustainability-linked luxury positioning.

Bitcoin & Treasury Moves: Bhutan reportedly transferred another 90 BTC (about $7M) to a SegWit address, pushing 2026 Bitcoin-related outflows past $237M and renewing questions about how the country is managing its sovereign crypto exposure. Agrifood Exports: Bhutan exported 10,975 MT of primary agricultural products in Jan–Apr 2026, led by oranges (8,012 MT) and arecanut, with demand concentrated in India and Bangladesh. Trade Corridors Stalled: Bhutan’s plans to improve export routes via Bangladesh land customs and rail links remain pending India’s approvals, keeping logistics costs and market access hurdles in place. Forestry for Market Access: Bhutan launched a pilot to move toward Forest Stewardship Council certification, aiming for better traceability and wider global timber market access. Climate-Resilient Infrastructure: A new flood-resistant bridge in Thimphu’s Dechencholing brings relief after the 2024 flash flood, with flood-focused design and faster local recovery. Clean Energy for Households: HAB and Planethos partnered to roll out cleaner electric cookstoves, targeting indoor air pollution cuts and support for Bhutan’s energy transition. Rural Connectivity Pressure: MPs raised concerns that remote highland mobile gaps still affect safety and emergency response, even as rural network expansion continues. Piggery Stress: Piggery farmers face losses from weak pork prices, higher feed costs, and disease outbreaks, prompting calls for urgent support measures. BATIF 2.0 Agrifood Push: BATIF 2.0 in Thimphu secured major agrifood investment commitments and partnerships to scale supply chains, technology transfer, and market expansion.