New Delhi, Feb 3 (UNI) India and Bhutan held discussions here on Tuesday to strengthen cooperation in the Power Sector.
Minister of Energy and Natural Resources of Bhutan, Lyonpo Gem Tshering, met union Minister of Power and Housing & Urban Affairs, Manohar Lal, and Minister of State for Power and New and Renewable Energy, Shripad Naik, and discussed commercial optimisation of power output from the Punatsangchhu-II Hydroelectric Project (1020 MW).
Emphasis was placed on the early commissioning of the Punatsangchhu-I Hydroelectric Project (1200 MW).
The discussions also covered the way forward for the Sankosh Hydropower Project.
The 1,020 MW Punatsangchhu-II Hydroelectric Project is a major run-of-river project in Bhutan, inaugurated in August 2025 by Indian and Bhutanese leadership. Developed with Indian support, it increases Bhutan’s power capacity by nearly 40 per cent. Located on the Punatsangchhu River, it features six units of 170 MW each, crucial for regional energy security.
The Sankosh (or Sunkosh) Hydropower Project is a major proposed reservoir-based hydroelectric initiative in Bhutan, projected to have a capacity of 4,060 MW. Jointly developed with India, it is a key component of Bhutan’s renewable energy strategy, aimed at enhancing energy security and export capacity.
In addition, the two countries discussed the transmission infrastructure planning up to the year 2040, for which detailed consultations are currently underway.
It also covered the need to streamline approval for scheduling of power, particularly during lean months in Bhutan.
India-Bhutan hydropower cooperation began in 1961, followed by an agreement on hydroelectric power cooperation in 2006.
In the union Budget 2026-27 presented on February 1, Bhutan was allocated Rs 2,288 crore. This is the largest share of development aid provided to any of India’s neighbouring countries, representing an increase from the revised estimate of Rs 1,950 crore for the previous fiscal year.
The funds are primarily designated for driving 71 infrastructure and development projects under Bhutan’s 13th Five-Year Plan. Key areas of utilisation include the development of hydroelectric plants, power transmission lines, and regional connectivity through roads and bridges.
