100% FDI in hydropower not true
January 27, 2008-Thimphu: The Ministry of Economic Affairs refuted Friday news reports that Bhutan is considering 100% foreign direct investment from Indian companies in the hydropower sector.
A January 19 Press Trust of India (PTI) news release stated, “Bhutan is considering to allow 100% foreign direct investment by Indian companies in hydel power space, which is a departure from the maximum 70% permitted in any sector.”
The release also mentioned that Bhutan has identified 6-10 hydro projects and has sought participation from Indian companies for their development.
The Ministry of Economic affairs denied that no such agreement has been reached between the Indian companies and Bhutan.
“The press release is not true,” said Dasho Sonam Tshering, secretary, Ministry of Economic Affairs.
But plans to have partnership with companies not only from India but also other countries are under consideration, he said.
“If we don’t open up to partnership, we’ll never be able to harness hydro power to its full potential,” said Dasho Sonam Tshering.
The Partnership Summit in New Delhi from January 16-18 generated a keen interest among Indian companies to invest in various businesses in Bhutan.
Investment opportunities and government policies in the sectors open to foreign investment were highlighted. The sectors covered were IT, banking, tourism, education, agro-industries and hydro power.
“A lot of interest in the services sector and the hydropower sector was generated among the participants,” said a ministry press release.
Power Trading Corporation India Ltd., Tata Consultancy Services, Punjab National Bank, Taj Group of Hotels, and Manipal University were some of the prominent Indian business houses present at the Summit.
On the invitation of the government of India, the secretary of Economic Affairs led a delegation of 17 members, consisting of CEOs from Druk Holdings and Investment, Bank of Bhutan and Druk Green Power Corporation.
Source: Bhutan Times