India-Bhutan Energy Partnership Deepens: Manohar Lal Reviews Key Hydropower Projects

Strengthening India-Bhutan strategic cooperation in the energy sector, Union Minister of Power and Housing & Urban Affairs Shri Manohar Lal on Friday reviewed progress on two of the most significant bilateral hydropower projects—Punatsangchhu-I and Punatsangchhu-II—during the second day of his official visit to Bhutan.

The visit underscored the growing importance of clean energy collaboration between the two countries, with hydropower continuing to serve as a cornerstone of their economic and strategic partnership.

Major Milestone at Punatsangchhu-I Project

At the Punatsangchhu-I Hydropower Project, Shri Manohar Lal attended the ceremonial concrete pouring of the dam, marking a critical construction milestone in what is the largest joint hydropower initiative between India and Bhutan.

The project, once completed, is expected to significantly boost Bhutan's installed hydropower capacity, which currently forms the backbone of its economy, contributing nearly 25–30% of GDP and a major share of export revenues.

During the visit, the Minister:

• Inspected the powerhouse and dam site

• Reviewed construction progress and timelines

• Interacted with engineers and project teams

He commended the joint efforts of Indian and Bhutanese engineers, highlighting their commitment to safety, efficiency and technological excellence in executing complex infrastructure projects in challenging terrain.

India's Continued Support and Strategic Commitment

Reaffirming India's role as Bhutan's key development partner, Shri Manohar Lal emphasized the long-standing cooperation in the hydropower sector, which includes:

• Financial assistance and concessional funding

• Technical expertise and engineering support

• Long-term power purchase agreements

India imports a significant portion of Bhutan's surplus electricity, helping ensure stable revenue streams for Bhutan while supporting India's clean energy transition.

Punatsangchhu-II: A Model of Operational Success

The Minister also visited the Punatsangchhu-II Hydropower Project, which was jointly inaugurated on November 11, 2025, by Prime Minister Shri Narendra Modi and His Majesty King Jigme Khesar Namgyel Wangchuck.

Since its commissioning, the project has emerged as a key contributor to Bhutan's energy output, already generating substantial electricity and enabling exports of clean hydropower to India.

Reviewing the project's performance, Shri Manohar Lal noted:

• Strong operational efficiency and reliability

• Significant revenue generation for Bhutan

• Contribution to regional clean energy goals

He appreciated the successful execution of the project and highlighted its role in promoting sustainable development and economic growth in Bhutan.

Boosting Regional Clean Energy Goals

India and Bhutan's hydropower collaboration is widely regarded as one of the most successful examples of cross-border clean energy cooperation in South Asia.

With Bhutan's estimated hydropower potential exceeding 30,000 MW, ongoing and future projects are expected to:

• Strengthen regional energy security

• Reduce carbon emissions

• Support India's target of achieving 500 GW of non-fossil fuel capacity by 2030

Cultural Diplomacy and Heritage Visit

Beyond infrastructure engagements, the Union Minister also visited the historic Wangdue Phodrang Dzong, a prominent cultural and architectural landmark that reflects Bhutan's rich heritage.

The visit highlighted the broader scope of India-Bhutan ties, which extend beyond economic cooperation to include cultural, historical and people-to-people connections.

A Partnership Anchored in Sustainability

Concluding his engagements, Shri Manohar Lal reiterated India's commitment to supporting Bhutan in its journey toward sustainable and inclusive energy development.

The visit reinforces the shared vision of both nations to leverage clean hydropower as a driver of economic growth, environmental sustainability and regional cooperation, further strengthening the unique and time-tested India-Bhutan partnership.