Power Play: India, Bhutan Activate Massive 1,020 MW Hydro Project.

India and Bhutan have jointly inaugurated the 1,020 MW Punatsangchhu-II Hydroelectric Project, marking a major milestone in Bhutan’s energy sector by increasing its hydropower capacity by nearly 40%.

Located on the Punatsangchhu River, the project will substantially enhance Bhutan’s electricity generation, catering to domestic demand while expanding power exports to India. To further deepen bilateral energy cooperation, India has extended a concessional credit line of Rs 40 billion to Bhutan for upcoming energy projects.

The inauguration underscores the strengthening energy partnership between the two nations. Alongside this, both sides agreed to resume work on a long-pending hydroelectric project and signed an MoU to advance renewable energy collaboration — reaffirming their shared commitment to energy security and sustainable regional development.

News by Rahul Yelligetti.