THEBUSINESSBYTES
BUREAU
NEW
DELHI, FEBRUARY 3, 2026
India and Bhutan on Tuesday
reaffirmed their longstanding partnership in the power sector, with both sides
agreeing to strengthen cooperation across hydropower development, cross-border
transmission and power trade.
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 review ongoing collaboration and outline the
way forward. Recalling that Indo-Bhutan hydropower cooperation began in 1961
and was formalised through the 2006 hydroelectric power agreement, the
ministers highlighted its enduring strategic and economic significance.
Discussions focused on
optimising power generation from the 1,020 MW Punatsangchhu-II project and
expediting the commissioning of the 1,200 MW Punatsangchhu-I project. The two
sides also reviewed progress on the Sankosh Hydropower Project and assessed
cross-border transmission requirements up to 2040, including the need to
streamline approvals for power scheduling during Bhutan’s lean months.
“The power partnership between India and
Bhutan is a model of trust and mutual benefit,” Manohar Lal said, while Lyonpo
Gem Tshering noted that hydropower cooperation remains a cornerstone of
bilateral relations. Both countries expressed confidence that their energy
collaboration would continue to grow stronger in the years ahead.
