The Union Cabinet approved the signing of Memorandum of Understanding (MoU) and Agreement between India and Bhutan across various sectors such as General Supply of Petroleum, Oil, and Lubricants (POL); Food Safety; Energy Efficiency and Energy Conservation Measures. 

MoU on General Supply of Petroleum, Oil, Lubricants (POL

Key Highlights:

  • The Union Cabinet approved the signing of a MoU between the Government of India and the Royal Government of Bhutan on General Supply of Petroleum, Oil, Lubricants (POL), and related products from India to Bhutan.
  • The MoU aims to enhance economic and commercial ties between India and Bhutan, without any gender, class, or income bias, particularly in the hydrocarbon sector.


  • Promotion of bilateral trade in the hydrocarbon sector. 
  • Ensuring a secured and long-term supply of petroleum products to Bhutan.
  • The MoU supports India’s goal of Aatmanirbhar Bharat (self-reliant India) by emphasizing the importance of exports.
  • It aligns with India’s Neighborhood First Policy, serving as an Energy Bridge in the region.

Agreement on Food safety 

Key Highlights: 

  • The Union Cabinet approved the signing of an Agreement between Bhutan Food and Drug Authority (BFDA) and the Food Safety and Standards Authority of India (FSSAI).
  • This Agreement aims to enhance cooperation in the areas of food safety between the two countries.


  • The Agreement will facilitate trade between Bhutan and India by streamlining processes related to food safety compliance.
  • BFDA will issue Health Certificates to ensure compliance with FSSAI requirements when exporting products to India, thus promoting Ease of Doing Business and reducing compliance costs for both countries.

MoU in the field of Energy Efficiency and Energy Conservation Measures 

Key Highlights: 

  • The Union Cabinet approved the signing of a MoU between India and Bhutan on extending cooperation in the field of Energy Efficiency and Energy Conservation Measures.
  • The MoU was signed between the Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India, and the Department of Energy, Ministry of Energy and Natural Resources, Royal Government of Bhutan.
  • India aims to assist Bhutan in enhancing energy efficiency in the household sector by promoting the star labelling programme developed by BEE.
  • The formulation of building codes tailored to Bhutan’s climatic conditions will be facilitated based on India’s experience. 
  • The MoU envisages the creation of a pool of energy professionals in Bhutan through the institutionalization of training for energy auditors. 

About BEE

  • It was set up in March 2002 under the provisions of the Energy Conservation Act, 2001, with the primary objective of reducing the energy intensity of the Indian economy, thereby contributing towards sustainable development of country.
  • The Star-labelling program has been formulated by the BEE to help consumers make an informed choice about various energy-consuming appliances, in terms of energy savings.
  • It presently covers 37 appliances used in daily life. 


  • Training of retailers will help disseminate information on energy-efficient products to consumers, highlighting savings from star-rated appliances.
  • India will support Bhutan in developing and implementing the Standards and Labelling scheme.
  • The MoU will enable the exchange of information, data, and technical experts related to Energy Efficiency and energy conservation between India and Bhutan.
  • It will help ensure the availability of energy-efficient products in the Bhutanese market and analyze energy efficiency policies and cooperation in research and technology deployment in this field.

Way Forward 

The approval of Memoranda of Understanding (MoUs) between India and Bhutan across various sectors marks a significant step towards strengthening bilateral cooperation. These MoUs pave the way for deeper collaboration between the two nations, ultimately contributing to regional development and prosperity.

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