PM Modi, Bhutan King inaugurate Punatsangchhu-II Hydropower Project, marking new milestone in bilateral energy partnership

Thimphu [Bhutan], November 11 : Prime Minister Narendra Modi and Bhutan King Jigme Khesar Namgyel Wangchuck on Tuesday jointly inaugurated the Punatsangchhu-II Hydroelectric Project in the presence of the Sacred Buddha Relics, symbolising the spiritual and developmental bond shared by the two nations.

With the inauguration of the Punatsangchhu-II Hydropower Project, India and Bhutan have reached another significant milestone in their energy partnership, further deepening their cooperation in the renewable energy sector.

The 1020 MW Punatsangchhu-II Hydroelectric Project was fully completed in 2025 following the synchronisation of its final unit with Bhutan's national power grid.

The commissioning of this project marks a major step forward in India-Bhutan clean energy collaboration, raising Bhutan's total power generation capacity by nearly 40 per cent and enhancing regional energy security through sustainable practices.

After steady progress over the past year, the final unit, Unit 6 with a capacity of 170 MW, was connected to the grid in August 2025, following the earlier commissioning of five units between December 2024 and July 2025.

Together, all six units have supplied more than 1.3 billion units of electricity to Bhutan's national grid, generating around Nu 4.9 billion in revenue.

Situated on the Punatsangchhu River in Wangdue Phodrang district, the project functions as a run-of-the-river hydropower facility with a total installed capacity of 1020 MW.

Approved at a total cost of Rs 37,778 million, it was entirely funded by the Government of India, with 30 per cent provided as a grant and the remaining 70 per cent as a loan at an annual interest rate of 10 per cent.

Over the years, both countries have built a strong foundation of collaboration in hydropower development, successfully completing several key projects, including Chukha (336 MW), Kurichhu (60 MW), Tala (1020 MW), Mangdechhu (720 MW), and now Punatsangchhu-II (1020 MW).

Collectively, these projects have expanded Bhutan's installed power capacity to over 3500 MW, allowing the export of surplus electricity to India and further strengthening economic ties between the two neighbours.

The Punatsangchhu-II project stands as a testament to sustainable energy cooperation, advancing both countries' goals of clean power generation and climate resilience.

As a run-of-the-river project, it minimises environmental and social impact while ensuring long-term energy security, aligning with shared regional priorities for green growth and low-carbon development.

Energy cooperation between India and Bhutan continues to progress under the 2024 Joint Vision Document, which outlines future initiatives in clean and sustainable energy.

Upcoming ventures, including the 1200 MW Punatsangchhu-I project, are expected to build on this success, deepening bilateral cooperation and contributing to regional energy integration and shared prosperity.

Early on Tuesday, Prime Minister Narendra Modi held delegation-level talks with Bhutan King Jigme Khesar Namgyel Wangchuck in Thimphu as part of his two-day state visit to the Himalayan nation.

The meeting came shortly after the Prime Minister announced several major initiatives to strengthen India-Bhutan connectivity and reaffirmed New Delhi's commitment to their long-standing partnership. Addressing the event to mark the 70th birth anniversary of the Fourth King of Bhutan at Changlimethang Celebration Ground in Thimphu, Prime Minister Modi unveiled plans to construct an integrated immigration checkpoint near Bhutan's border town of Gelephu to facilitate the smooth movement of visitors and investors between the two countries.

The former King of Bhutan, Jigme Singye Wangchuck, who turns 70 on November 11, is popularly known as K4 (the fourth King of the Wangchuck line), while his son, the current King Jigme Khesar Namgyel Wangchuck, is referred to as K5.PM Modi also announced that Gelephu and Samtse would be connected to India's railway network, saying the project would improve market access for Bhutanese industries and farmers.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor