In the power industry, India and Bhutan are strengthening their cooperation. Bhutan’s energy minister, Lyonpo Gem Tshering, met with India’s power minister, Manohar Lal, to discuss the optimisation and commissioning of the Punatsangchhu hydropower projects and infrastructure planning to 2040.
During Bhutan’s lean months, they want to expedite the approval process for electricity scheduling. A key milestone was attained with the opening of the 1,020 MW Punatsangchhu-II Project by PM Narendra Modi in 2025, along with a Rs 4,000 crore line of credit from India to boost Bhutan’s economic progress.
Additionally, the construction of an immigration checkpoint in Hatisar and a Bhutanese temple near Varanasi are strengthening cultural relations. An MoU on renewable energy cooperation highlights their commitment to collaborate in numerous energy areas.

