Bhutan’s Minister of Energy and Natural Resources, Lyonpo Gem Tshering, met with Union Minister of Power Manohar Lal in New Delhi to enhance the enduring collaboration between their countries in the power sector. The discussion focused on optimizing power output from the Punatsangchhu-II Hydroelectric Project (1020 MW) and expediting the commissioning of the Punatsangchhu-I Hydroelectric Project (1200 MW). Plans for the Sankosh Hydropower Project and transmission infrastructure up to 2040 were also deliberated.
Both nations are currently engaged in detailed consultations regarding transmission infrastructure planning up to 2040. The talks also addressed the necessity of streamlining power scheduling approvals, especially during low-demand periods in Bhutan. The meeting highlighted the strong friendship between India and Bhutan, with a commitment to further fortify this bond. Minister of State for Power and New and Renewable Energy, Shripad Naik, along with senior officials, were also part of the discussions.
In November 2025, Prime Minister Narendra Modi inaugurated the Punatsangchhu-II Hydroelectric Project, a significant milestone in the energy partnership between India and Bhutan. The two countries have also agreed to resume work on the main dam structure of the Punatsangchhu-I Hydroelectric Project. India has provided Bhutan with a Rs 4,000 crore Line of Credit to support economic growth in the Himalayan nation.
Additionally, to enhance cultural ties, PM Modi announced the allocation of land in Varanasi for constructing a Bhutanese Temple and Guest House. The establishment of an Immigration Check Post in Hatisar across Gelephu was also decided upon by the two nations. During PM Modi’s visit, Memoranda of Understandings (MoUs) were signed, including one on cooperation in Renewable Energy between Bhutan’s Minister for Energy and Natural Resources and India’s Minister for New and Renewable Energy. This MoU aims to formalize collaborations in renewable energy, focusing on areas like Solar energy, Wind energy, Biomass, Energy Storage, Green Hydrogen, and capacity building.
