India and Bhutan Reaffirm Strong Power Partnership, Review Major Hydropower Projects

India and Bhutan have reaffirmed their commitment to deepen cooperation in the power sector, with both countries reviewing progress on major hydropower projects, cross-border electricity trade, transmission connectivity and renewable energy.

The discussions were held in New Delhi between Union Minister of Power and Housing & Urban Affairs Manohar Lal and Bhutan’s Minister of Energy and Natural Resources, Lyonpo Gem Tshering.

The meeting underlined the long-standing importance of energy cooperation in India-Bhutan relations and explored new avenues to strengthen collaboration across the broader power sector.

Power Cooperation Remains a Pillar of India-Bhutan Relations

India and Bhutan share one of South Asia’s most established energy partnerships, with hydropower development forming a central part of bilateral economic cooperation.

During the meeting, both Ministers reviewed ongoing initiatives and discussed ways to further expand cooperation in electricity generation, transmission and trade.

The two sides also assessed progress under existing bilateral institutional mechanisms designed to support regular engagement and coordination in the power sector.

Punatsangchhu, Sankosh and Chukha Projects Reviewed

Several major hydropower projects featured prominently in the discussions.

These included Punatsangchhu-I, Punatsangchhu-II, Sankosh and Chukha.

The projects are important not only for Bhutan’s domestic energy sector but also for electricity trade between the two countries.

Hydropower has traditionally allowed Bhutan to generate revenue through electricity exports while helping India access clean and renewable power from a neighbouring country.

Continued progress on these projects is therefore expected to contribute to both economic cooperation and regional energy security.

Cross-Border Electricity Trade in Focus

The two Ministers also discussed the expansion of cross-border electricity trade.

India and Bhutan already maintain close electricity connectivity, and deeper integration could allow for more efficient use of generation capacity and support the growing role of renewable energy in the region.

Cross-border power trade can also improve grid stability by allowing electricity to be transferred between markets depending on generation availability and demand conditions.

For Bhutan, such arrangements provide access to a large neighbouring electricity market, while India benefits from additional renewable power supplies.

Transmission Connectivity and Renewable Energy Discussed

Transmission infrastructure was another major area of discussion.

Strong cross-border transmission links are essential for evacuating power from large hydropower projects and enabling reliable electricity trade.

India and Bhutan also explored opportunities for wider cooperation in renewable energy, signalling that the bilateral partnership could gradually extend beyond traditional hydropower.

The discussions covered institutional cooperation and capacity building as well, with both sides emphasizing the importance of technical expertise, workforce development and stronger coordination between energy agencies.

Energy Partnership Linked to Regional Security

Both countries recognised energy cooperation as an important contributor to sustainable development and regional energy security.

An interconnected electricity system can help countries manage energy demand more efficiently and integrate greater quantities of renewable power.

For the Himalayan region, cooperation in hydropower and other renewable technologies also offers an opportunity to build lower-carbon electricity systems while supporting economic development.

India Reiterates Support for Bhutan

Manohar Lal reiterated India’s commitment to supporting the long-standing India-Bhutan partnership in the power sector.

Lyonpo Gem Tshering appreciated India’s continued support and expressed Bhutan’s desire to further expand bilateral energy cooperation.

Both Ministers expressed satisfaction with the progress made so far and agreed on the importance of timely implementation of mutually beneficial projects.

The meeting concluded with both sides reaffirming their shared resolve to strengthen cooperation through continued dialogue, close coordination and deeper institutional engagement.

With hydropower development, transmission connectivity and cross-border electricity trade already forming a strong foundation, the India-Bhutan energy partnership is expected to remain a key component of bilateral relations and an increasingly important part of regional clean-energy cooperation.

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Reference

Press Information Bureau, Government of India
“India and Bhutan Reaffirm Commitment to Strengthen Bilateral Power Sector Cooperation”
Published: August 7, 2026, 5:07 PM

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