1,020-MW Punatsangchuu-II hydro project to enhance Bhutan's power generation capacity by 40%: MEA

Thimpu, Bhutan: Ministry of External Affairs (MEA) Spokesperson Randhir Jaiswal on Tuesday said that the inauguration of the 1020 MW Punatsangchuu-II Hydroelectric Project in Bhutan would enhance the country's power generation capacity by 40%, highlighting that the project marks yet another milestone in the dynamic India-Bhutan energy partnership.

Prime Minister Narendra Modi and Bhutan's King Jigme Khesar Namgyel Wangchuck jointly inaugurated the Punatsangchhu-II Hydroelectric Project on Tuesday, in the presence of the Sacred Buddha Relics, symbolising the spiritual and developmental bond shared by the two nations.

Sharing the details in a post on X, Jaiswal said: "In the presence of the sacred Holy Relics of Lord Buddha, PM @narendramodi and His Majesty Jigme Khesar Namgyel Wangchuck, the King of Bhutan, jointly inaugurated the 1020 MW Punatsangchuu-II Hydroelectric Project. This HEP, which enhances 's power generation capacity by 40%, will supply electricity to both countries. With the completion of the project, yet another milestone has been achieved in the dynamic and mutually beneficial - energy partnership."

With the inauguration of the Punatsangchhu-II Hydropower Project, India and Bhutan have reached another significant milestone in their energy partnership, further deepening their cooperation in the renewable energy sector.

The 1020 MW Punatsangchhu-II Hydroelectric Project was fully completed in 2025 following the synchronisation of its final unit with Bhutan's national power grid.

The commissioning of this project marks a major step forward in India-Bhutan clean energy collaboration, raising Bhutan's total power generation capacity by nearly 40 per cent and enhancing regional energy security through sustainable practices.

After steady progress over the past year, the final unit, Unit 6 with a capacity of 170 MW, was connected to the grid in August 2025, following the earlier commissioning of five units between December 2024 and July 2025.

Together, all six units have supplied more than 1.3 billion units of electricity to Bhutan's national grid, generating around Nu 4.9 billion in revenue.

Situated on the Punatsangchhu River in Wangdue Phodrang district, the project functions as a run-of-the-river hydropower facility with a total installed capacity of 1020 MW.

Approved at a total cost of Rs 37,778 million, it was entirely funded by the Government of India, with 30 per cent provided as a grant and the remaining 70 per cent as a loan at an annual interest rate of 10 per cent.

The Punatsangchhu-II project stands as a testament to sustainable energy cooperation, advancing both countries' goals of clean power generation and climate resilience.

As a run-of-the-river project, it minimises environmental and social impact while ensuring long-term energy security, aligning with shared regional priorities for green growth and low-carbon development.

Energy cooperation between India and Bhutan continues to progress under the 2024 Joint Vision Document, which outlines future initiatives in clean and sustainable energy.