India–Bhutan Review Power Sector Cooperation

• 04 Feb 2026

On 3rd February 2026, India and Bhutan reviewed and reaffirmed their long-standing partnership in the power sector, with discussions focusing on hydropower development, cross-border transmission and future energy cooperation.

Key Points

• Punatsangchhu-II Project: Both sides discussed commercial optimisation of power generation from the Punatsangchhu-II Hydroelectric Project with a capacity of 1,020 MW.
• Punatsangchhu-I Commissioning: Emphasis was placed on the early commissioning of the 1,200 MW Punatsangchhu-I Hydroelectric Project to enhance Bhutan’s generation capacity and regional energy security.
• Sankosh Hydropower Project: The ministers deliberated on the future roadmap of the proposed Sankosh Hydropower Project as a key pillar of future Indo-Bhutan energy cooperation.
• Cross-Border Transmission: Development of cross-border transmission infrastructure up to 2040 was reviewed to support growing bilateral power trade.
• Power Scheduling Approvals: Discussions highlighted the need to streamline approvals for power scheduling, especially during Bhutan’s lean hydropower generation months.
• Historical Cooperation: Both sides recalled that Indo-Bhutan hydropower cooperation began in 1961 and was institutionalised through the 2006 Agreement on Hydroelectric Power Cooperation.