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The incidents in Doklam area in 2017, involving Indian armed forces confronting the Chinese, to prevent unilateral changes in the tri-junction border area, marked the example of close security cooperation between India and Bhutan based on the treaty of friendship between the two countries.

2.6. Concerns

As of July 2017, Bhutan’s debt to India for the three major ongoing projects: Mangdechhu, Punatsangchhu 1 and 2 is approximately ₹12,300 crores which accounts for 77% of the country’s total debt, and is 87% of its GDP.

While the cost of the 720 MW Mangdechhu project has nearly doubled in the past two years of construction, both Punatsangchhu 1 and 2, each of 1200 MW have trebled in cost and been delayed more than five years over the original completion schedule.