India-Bhutan Unveil Major Hydropower Triumph with Punatsangchhu-II

Prime Minister Modi and Bhutan's King jointly inaugurated the Punatsangchhu-II Hydropower Project, marking a milestone in India-Bhutan energy collaboration. The project enhances Bhutan's power capacity by 40%, driven by India's investment, and highlights a shared commitment to sustainable energy and regional prosperity.

In a significant boost to the India-Bhutan energy collaboration, Prime Minister Narendra Modi and Bhutan King Jigme Khesar Namgyel Wangchuck jointly inaugurated the Punatsangchhu-II Hydroelectric Project. The event underlines the strong spiritual and developmental ties between the two nations, while symbolising their commitment to renewable energy cooperation.

The 1020 MW project, fully completed in 2025, has expanded Bhutan's power generation capacity by nearly 40%. Entirely funded by the Indian government at a cost of Rs 37,778 million, it advances clean energy goals in the region through sustainable practices. Unit 6, the project's final component, joined the power grid in August 2025.

This hydropower facility, situated on Bhutan’s Punatsangchhu River, highlights a series of successful India-Bhutan energy projects. Combined with existing endeavors, Bhutan's capacity now exceeds 3500 MW, enhancing regional energy security and facilitating electricity export to India. This cooperation aligns with the Joint Vision Document focusing on future sustainable energy initiatives.