India, Bhutan Deepen Energy Cooperation with Focus on Hydropower Projects

India and Bhutan have stepped up efforts to strengthen bilateral energy cooperation, with a focus on advancing key hydropower projects.

Union Power Minister Manohar Lal met Bhutan’s King Jigme Khesar Namgyel Wangchuck on Thursday to review ongoing collaboration and discuss expansion of hydroelectric development in Bhutan.

Lal said he will witness the commencement of dam construction works for the 1,200-MW Punatsangchhu-I Hydroelectric Project on April 10, along with his Bhutanese counterpart.

In a related development, the two countries signed a protocol to the agreement on export tariff for the 1,020-MW Punatsangchhu-II Hydroelectric Project.

The project, jointly inaugurated in November 2025 by Prime Minister Narendra Modi and the Bhutanese King, has been exporting surplus power to India since September 19, 2025, under a mutually agreed tariff.

The power ministry said the developments reflect continued momentum in India-Bhutan energy ties, with cooperation in the sector remaining a key pillar of bilateral relations.