India Strengthens Energy Bonds with Bhutan: New Hydropower Initiatives Unveiled

India and Bhutan expanded their energy partnership during Prime Minister Modi's visit. India extended a credit line and inaugurated a new hydroelectric project, strengthening ties with Bhutan amid China's engagement in the region. Bhutan's increased hydropower capacity will export excess energy to India.

India and Bhutan have bolstered their energy partnership, as Prime Minister Narendra Modi visited Bhutan, extending a 40-billion-rupee line of credit and inaugurating a hydroelectric project. This initiative is a strategic move to enhance India's influence and strengthen ties with Bhutan, amid China's increased regional engagement.

While addressing the audience during the festivities celebrating the Bhutanese king's father's birthday, Modi emphasized the trust and developmental partnership between India and Bhutan, highlighting that their collaboration serves as a regional model. The accelerated energy partnership is seen as pivotal for the growth of both nations.

The India-funded Punatsangchhu-II project, a 1,020-megawatt hydropower initiative, marks the latest addition to Bhutan's energy infrastructure, boosting its capacity by nearly 40%. Indian companies like Tata Power, Adani Group, and Reliance Power are actively engaging in Bhutan's energy sector, aiming to export surplus energy to India.