India and Bhutan Discuss Hydropower Cooperation, Focus on Punatsangchhu Projects and Cross-Border Transmission

Bhutan’s Minister of Energy and Natural Resources 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 to strengthen bilateral cooperation in the power sector. The talks focused on deepening the long-standing partnership between India and Bhutan in hydropower development.

Indo-Bhutan hydropower collaboration began in 1961 and was further formalised through an agreement on hydroelectric power cooperation in 2006. During the meeting, both sides discussed commercial optimisation of power generation from the 1020 MW Punatsangchhu-II Hydroelectric Project and stressed the need for early commissioning of the 1200 MW Punatsangchhu-I project.

The ministers also reviewed the future roadmap for the Sankosh Hydropower Project and assessed cross-border transmission links up to 2040. Discussions included the need to streamline approvals for power scheduling, especially during Bhutan’s lean generation months, to ensure stable and efficient electricity exchange between the two countries.