Gautam Adani, the chairman of the Adani Group, has recently closed a deal with the Bhutan government. The business owner has just returned from Bhutan after meeting with Prime Minister Tshering Tobgay and King Jigme Khesar Namgyel Wangchuck. The main motive behind the visit was to sign a Memorandum of Understanding for constructing green hydroelectric power plants in Chukha province.
This Memorandum of Understanding was signed between the Adani Group and Bhutan’s Druk Green Power Corporation (DGPC). This is going to be one of the biggest ventures taken up by the Adani Group after the Adani crisis. It will add to the profitability of the global conglomerate’s business.
The Hydroelectric Project:
Once constructed, the hydroelectric power plant will have a capacity of 570 MW. It will increase Bhutan’s renewable energy capacity and the country’s increased demand for electricity will be met. The collaboration will also pave the path for more renewable energy projects. This will cause the Adani Group to take a further interest in bringing about developments in Bhutan.
The Adani Group has always been deeply interested in bringing about sustainable energy transformation in different countries across the globe. By signing the Memorandum of Understanding for building the hydro facility, the conglomerate has once again crossed a single significant milestone towards strengthening its boundaries and increasing its hold over the renewable sector.
Why Collaborate with Bhutan?
In a hydroelectric facility, the flow of water is mainly used to generate electricity. This makes it a reliable energy source. The energy generated is also environmentally friendly. Bhutan is known for its multiple water resources and its hilly topography. This makes it an ideal destination for developing a hydropower project. By being a part of this project, the Adani Group aims to utilise Bhutan’s natural resources to meet its growing energy demands. The global conglomerate also sees this project as a potential opportunity to recover from the Adani crisis.
The MoU signed between the Adani Group and Bhutan will serve as a gateway for infrastructure development in the country. Bhutan, a land amidst the Himalayas, is situated between India and China. The country is actively looking for international investments to bring about infrastructural development and strengthen its economy. Other than producing clean energy, the hydro plant will also help boost Bhutan’s economy. It will lead to multiple job creation. The overall living standards of the people will increase. Because of a reliable supply of energy, industrial activities will also take place in different corners of Bhutan.
As you know, the Adani Group has always tried its best to grow its clean energy portfolio and set highly ambitious renewable energy goals. The hydroelectric facility in Bhutan will take the Adani Group one step closer to achieving its goals. It will also help the firm develop a really good international relationship with Bhutan. The merger will also facilitate trade between the two nations. The project will also help the Adani Group rise above the Adani crisis.
Plans for the Future:
During his conversation with the Prime Minister and the King, Gautam Adani indicated his active interest in taking up various infrastructural projects in Bhutan. After the MoU was signed, Gautam Adani also expressed his appreciation for Bhutan’s commitment towards bringing about infrastructure development. This strongly aligns with Adani Group’s desire to further work on expanding its hold over the infrastructural segment in the upcoming years. The possible areas of cooperation may spread across a wide range of industries.
Bhutan’s hilly topology makes it difficult to make investments in the transportation sector. With its high level of experience and expertise in the port development and logistics sector. The Adani Group’s expertise in creating environmentally friendly infrastructure will also play a big role in boosting the tourism industry in Bhutan.
The King of Bhutan is also quite hopeful about the collaboration with the Adani Group. He has repeatedly highlighted the importance of infrastructural development that aligns with the country’s environmental objectives.
Conclusion:
The MoU signed between the Adani Group and Bhutan serves as an important step towards cooperation between the two nations. The Group’s move towards venturing into the clean energy space and building a possible platform for more infrastructural projects will increase the Adani Group’s profitability. It will also provide the people of Bhutan with increased job opportunities and access to clean and reliable sources of energy. The country’s energy needs will also be fulfilled.
