PM Modi Inaugurates 1,020 MW Punatsangchhu-II Hydropower Project in Bhutan, Strengthens Bilateral Energy Ties

Prime Minister Narendra Modi inaugurated the 1,020 MW Punatsangchhu-II Hydroelectric Project on November 11 during his visit to Bhutan. The ceremony, held in the presence of the Holy Piprahwa Relics, initiated the commissioning of a project described as a symbol of the “friendship and exemplary cooperation” between India and Bhutan.

Both sides welcomed the commencement of electricity exports from Puntsangchhu-II to India and expressed satisfaction with the progress under the Joint Vision on Energy Partnership announced in March 2024.

Prime Minister Narendra Modi on November 12 departed for New Delhi after concluding a two-day state visit to Bhutan, marked by high-level meetings, joint inaugurations and significant announcements aimed at deepening bilateral cooperation in energy, connectivity, technology and sustainable development, according to ANI.

The Prime Minister was personally accompanied by the King of Bhutan, Jigme Khesar Namgyel Wangchuck, at the airport, indicating the unique warmth and trust characterising India-Bhutan relations.

"PM Narendra Modi has emplaned for New Delhi after concluding a productive State visit to Bhutan. In a special gesture, His Majesty, the King of Bhutan, came to see off PM at the airport. This visit will further deepen the India-Bhutan bilateral friendship and advance cooperation in various areas," the Ministry of External Affairs (MEA) stated in a post on X.

Commenting on Prime Minister Narendra Modi's visit to Bhutan, Rajeev Juneja, President, PHDCCI said that the move reaffirms India’s commitment to both economic and cultural co-operation fronts between the two countries. “India’s commitment to economic growth of Bhutan is strengthened by the inauguration of the 1,020 MW Punatsangchhu-II hydropower project, marking a new phase in Bhutan’s electricity exports to India,” Juneja added.

Further, recommencement of work on the 1,200 MW Punatsangchhu-I project with a concessional line of credit of ₹40bn by India for Bhutan’s energy sector enforces mutual trust and sustainable partnership, he added.

“For India, power imports from Bhutan will contribute to our clean energy commitment, regional energy security, and integration of renewable resources within its grid”, he asserted.

“The sanctification of the Royal Bhutan Temple in Rajgir and allocation of land in Varanasi for a Bhutanese temple and guest house exquisitely reflects the cultural and spiritual bond between India and Bhutan” said Ranjeet Mehta, CEO & Secretary General, PHDCCI.

Hydropower remains a key driver of economic growth, contributing significantly to national revenue, export incomes and infrastructure development for Bhutan. Hydropower partnership serves as both an economic and strategic support and environmental sustainability across the region.