Cabinet approves India-Bhutan MoUs for petrol, lubricant supply, energy efficiency

India will assist Bhutan to enhance energy efficiency in the household sector.

The Union Cabinet chaired by Prime Minister Narendra Modi approved two separate Memorandum of Understanding (MoU) between India and Bhutan on supply of petroleum, oil, lubricants (POL) and related products, and on extending co­operation in the field of energy efficiency.

The government said on March 13 that the MoU on petroleum products would promote bilateral trade in the hydrocarbon sector and would ensure secured and long term supply of petroleum products to Bhutan.

“It aims to benefit India and its citizens with improved economic and commercial linkages with Bhutan irrespective of any gender, class or income bias, particularly in the area of hydrocarbon sector,” a government statement said.

Since exports play crucial role in realizing Aatmanirbhar Bharat, the MoU would give thrust towards self-reliant India, the statement added.

MoU for energy efficiency initiatives 

The Union Cabinet also approved the signing of an MoU between India and Bhutan on extending co­operation in the field of Energy Efficiency and Energy Conservation Measures.

As part of this MoU, India will assist Bhutan to enhance energy efficiency in the household sector by promoting the star labelling programme developed by Bureau of Energy Efficiency. India, based on its experience, will also include the formulation of building codes, to suit the climate condition of Bhutan.

“Creation of a pool of energy professionals at Bhutan is also envisaged by institutionalizing training of energy auditors,” said the Prime Minister’s Office in a statement issued after the Cabinet meeting.

The MoU was signed between the Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India and Department of Energy, Ministry of Energy and Natural Resources, Royal Government of Bhutan.

“The training of retailers would help in dissemination of energy efficient products with consumer audience regarding savings from star rated appliances. India aims to support Bhutan in its endeavor to develop and implement the standards and labelling scheme,” read the statement from the Government of India.

Energy intensive Appliances are the main products leading to higher consumption at household or at commercial establishments. In view of the rapid growth in energy intensive consumer goods, the demand for electrical energy has been increasing every year. This rising demand can be optimized, if the consumers prefer high efficiency appliances. In India, BEE is spearheading the country's star-labelling program that now covers 37 appliances used in daily life.

The MoU was prepared by Ministry of Power in consultation with Ministry of External Affairs (MEA) and Department for Promotion of industry and internal Trade (DPIIT). The MoU will enable exchange of Information, data and technical experts related to energy efficiency and energy conservation between India and Bhutan. It will help Bhutan to ensure availability of energy efficient products in the market, the India government said.