Context: Recently, India and Bhutan launched a new route that operates between Jaigaon in West Bengal and Ahllay in Bhutan.
Key Points

• Boost bilateral trade and commerce.
• Beneficial for the movement of heavy vehicles like trucks and industrial raw materials from India to Bhutan.
• Decongest vehicular traffic along the Jaigaon-Phuentsholing route.
• "This new land route for movement of industrial raw materials and goods destined for Pasakha Industrial Estate will boost bilateral trade and commerce and lead to decongestion of vehicular traffic along the Jaigaon-Phuentsholing route.
• "Bhutan is India’s closest partner and friend and given the excellent bilateral relationship between our two countries and keeping in view as well the ongoing COVID-19 pandemic situation, this access to Ahllay should further facilitate trade and commerce between our two countries.”

India-Bhutan Trade:

• India is Bhutan’s largest trading partner. The bilateral trade stood at Rs 9,227 crore in 2018.
• Bhutan imports mineral products, machinery and mechanical appliances, electrical equipment, base metals, vehicles, vegetable products, plastics and articles from India.
• Bhutan exports electricity, portland cement, dolomite, timber and wood products, potatoes, cardamom and fruit products to India.

Kholongchhu (joint venture) Hydroelectric Project

• Hydropower sector is the flagship area of India-Bhutan bilateral cooperation.
• The run-of-the-river project is located on the lower course of the Kholongchhu river in Trashiyangtse district of eastern Bhutan.
• The project envisages an underground powerhouse of four 150 MW turbines, with water impounded by a concrete gravity dam of 95 metres height.
• It will be implemented by Kholongchhu Hydro Energy Limited, a joint venture company formed between Druk Green Power Corporation of Bhutan and Satluj Jal Vidyut Nigam of India.