Taking a crucial step towards energy security, India on Friday signed an agreement with Bhutan for purchase of power from its 1020 MW Tala hydro-electric project.
The Protocol to the Inter-governmental Agreement signed on March 5, 1996 on the setting up of the Tala Hydro-electric Project, lays down the commercial arrangements for the purchase of Tala power by India.
The Tala Hydro-electric Project, with 1020 MW capacity, is the largest bilateral cooperation project undertaken by India in the field of hydro-power in a foreign country.
The protocol was signed by Power Minister Sushil Kumar Shinde and Bhutanese Industry Minister Lyonpo Yeshey Zimba.
The two sides also inked an agreement on cooperation in the field of hydro-electric power between the two countries.
The agreement lays down the framework for future bilateral cooperation in the field of hydro-electric power by building upon the strengths of the two countries and their existing mutually-beneficial cooperation in the field of hydro-power development.
The two countries also signed an Agreement on Trade, Commerce and Transit, which provides for continued free trade arrangements between the two nations with simplified procedures and additional facilities and routes for Bhutan's transit trade with third countries.
The Agreement, which will remain valid for ten years, was signed by Commerce Minister Kamal Nath and Zimba.