India-Bhutan Strengthen Power Sector Ties

On 9th April 2026, the Union Minister of Power and Housing & Urban Affairs arrived in Bhutan for a four-day visit, marking a significant step in the continued deepening of India-Bhutan bilateral relations.

Key Points

Visit Details:
- Union Minister held talks with Bhutan Prime Minister Tshering Tobgay.
- Focus on further strengthening collaboration in energy security and sustainable development.
Key Agreements Signed:
- Tariff protocol for 1,020 MW Punatsangchhu-II Hydroelectric Project.
- Methodology for reactive energy accounting to improve grid stability.
Project Significance:
- Punatsangchhu-II already exporting surplus power to India.
- Strengthens long-standing hydropower partnership.
Expanded Cooperation Areas:
- Non-hydro renewable energy.
- Cross-border transmission.
- Project financing and capacity building.
- Institutional partnerships.
Institutional Mechanism:
- New bilateral framework for regular review and coordination.
- Enhances long-term collaboration.
Overall Significance:
- Deepens India-Bhutan strategic partnership.
- Promotes regional energy security and sustainability.
- Supports mutual economic growth and development.