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Thukten Zangpo

The Druk Holding and Investments (DHI) and its subsidiaries contributed 15.9 percent of the domestic revenue of the country through dividends and taxes in 2021.

The contribution, at Nu 5.475 billion (B), however, was a decrease of 17 percent compared to the previous year. DHI contributed Nu 6.621B to the government coffer in 2020 which was 19.9 percent of the total domestic revenue.

The dividend has declined by 33 percent from Nu 4.532B in 2020 to Nu 3.021B last year, however, the corporate income tax (CIT) increased to Nu 2.454B from Nu 2.089B, according to the finance ministry’s budget report 2022-23.

Despite the fall in the dividend, DHI generated gross revenue of Nu 8.336B last year. This was an increase of 12 percent from Nu 7.443B in 2020.



According to the report, the increase in gross revenue of DHI was due to an increase in dividends from subsidiary companies by 12 percent from Nu 7.168B to Nu 8.025B last year.

The gross revenue of the subsidiary companies under DHI was reported at Nu 40.246B last year, an increase of 16 percent from Nu 34.676B in 2020. Similarly, the profit after tax also increased by 83 percent from Nu 3.644B to Nu 6.686B.

The increase in revenue was because of an increase in revenue from State Mining Corporation Limited (SMCL), Bhutan Power Corporation Limited (BPCL), and Bhutan Ferro Alloys Limited, the report added.

SMCL’s profit after tax grew over 300 percent to 1.568B last year from Nu 363.06M in 2020; its dividend saw growth from Nu 316.44M in 2020 to Nu 364.548M last year.

BPCL’s profit after tax grew to 1.114B last year from Nu 568.71M in 2020. The company’s dividend also increased to Nu 460.589M last year from Nu 412.141M in 2020.



Bhutan Telecom Limited performed well in the year with its dividend income growing more than double in 2021. The dividend grew from Nu 771.758M in 2020 to Nu 1.55B last year.

Similarly, Druk Green Power Corporation Limited’s dividend also increased from Nu 5.132B in 2020 to Nu 5.6B last year. The company made a profit of Nu 39M last year compared to the previous year.

Bank of Bhutan Limited achieved a profit after tax of Nu 465.83M from Nu 87.52M in 2020.

However, the Druk Air Corporation Limited’s (DACL) loss after tax dipped to Nu 1.49B last year from Nu 1.15b IN 2020.

Similarly, Dungsum Cement Corporation Limited’s loss narrowed to Nu 351.21M from Nu 603.81M in 2020.

Bhutan Board Products Limited’s loss after tax grew to Nu 117.25M last year from Nu 63.2M compared to the previous year.

State Trading Corporation of Bhutan Limited declared a dividend of 25% to its shareholders for the income year 2021 and Nu 22.94M was transferred to DHI in May 2022 as a dividend.



However, the companies that DHI did not receive dividend income from in 2021 were Bank of Bhutan Limited, Druk Air Corporation Limited, and Penden Cement Authority Limited.

Similarly, DHI’s associate companies namely Bhutan National Bank Limited and Royal Insurance Corporation of Bhutan Limited also did not contribute to the dividend.

On the expenditure front, the DHI’s expenditure decreased by 77.7 percent last year from Nu 701.083M to Nu 156.594M.

“The decrease in expenditure was due to a decrease in repair and maintenance costs and other costs by 89.9 percent and finance costs by 99.3 percent,” according to the ministry.

In the fiscal year 2022-21, total subsidies of Nu 1.693B were transferred to the DHI. The DACL received an interest subsidy of Nu 116.622M for the purchase of ATR 42-600 and for the purchase of the third aircraft.



Meanwhile, Nu 1.496B was provided to citizens through BPCL as subsidy for rural electricity. Royal Insurance Corporation of Bhutan Limited also received a subsidy.

The total assets of the DHI grew by 3.8 percent to Nu 68.668B in 2021 from Nu 66.150B in 2020. The increase was mainly attributed to an increase in capital work and investment.

DHI owns 10 companies and controls four companies.

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