Joint press release highlights key agreements and milestones in hydropower cooperation between India and Bhutan.
A Joint Press Release issued by the Royal Government of Bhutan and the Government of India marked the official visit of India’s Minister for Power and Housing & Urban Affairs to Bhutan from April 9 to 12, 2026. The visit, held in Thimphu, reflects the strong and enduring partnership between the two countries.
At the invitation of H.E. Lyonpo Gem Tshering, H.E. Mr. Manohar Lal, Minister for Power and Housing & Urban Affairs of India, is undertaking this official visit.
During the visit, His Excellency will grace the first concrete pour ceremony at the Punatsangchhu-I Hydroelectric Project dam on April 10, 2026. This marks a significant milestone with the commencement of dam works at the 1200 MW project, an important development for both nations.
A major outcome of the visit was the signing of a protocol agreement for the Punatsangchhu-II Hydroelectric Project export tariff on April 9, 2026, in Thimphu. The 1020 MW project was jointly inaugurated by Jigme Khesar Namgyel Wangchuck and Narendra Modi on November 11, 2025. The project began exporting surplus power to India from September 19, 2025, at a mutually agreed tariff.
Both sides also signed a methodology for accounting reactive power exchange between Bhutan and India, which will come into effect from May 1, 2026. This agreement is expected to enhance grid stability, ensure transparent accounting of electricity flows, and strengthen cross-border power connectivity.
The Bhutan–India partnership is built on long-standing cooperation, particularly in the energy sector, supported by deep mutual trust and understanding. The visit is expected to further strengthen collaboration across multiple areas, including power generation, electricity trade, transmission connectivity, equipment supply, training, and technical cooperation.
The developments highlighted in the joint press release underline the shared commitment of both nations to advancing sustainable energy cooperation and deepening their bilateral relationship.
Source: Embassy of India, Thimphu
