Punatsangchhu projects anchor growing bilateral cooperation in the power sector.

India, Bhutan Step Up Energy Ties with Focus on Major Hydropower Projects.

India and Bhutan have held high-level discussions to further strengthen bilateral energy cooperation, with a key focus on large hydroelectric projects. Union Power Minister Manohar Lal met Bhutan’s King Jigme Khesar Namgyel Wangchuck and discussed ways to deepen collaboration in the energy sector, which remains a cornerstone of India–Bhutan relations. The minister is scheduled to attend the commencement of dam construction works for the 1,200-MW Punatsangchhu-I Hydroelectric Project on April 10, alongside his Bhutanese counterpart. Earlier, the two countries signed a protocol to the agreement on the export tariff for the 1,020-MW Punatsangchhu-II project. Punatsangchhu-II, jointly inaugurated by Prime Minister Narendra Modi and the Bhutan King in November last year, began exporting surplus power to India from September 19, 2025, at a mutually agreed tariff. The developments underscore strong momentum in bilateral energy cooperation and highlight hydropower as a tangible symbol of the mutually beneficial partnership between the two nations.