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India and Bhutan officially brought the 1,020 MW Punatsangchhu II Hydroelectric Project (PHEP II) into full operation. The project is located in Bhutan's Wangdue Phodrang district and was implemented under a bilateral pact between the two countries. India provided funding with 30% as grant and 70% as loan, and the plant will export all surplus power to India. The completed facility boosts Bhutan's installed hydropower capacity by around 40% and continues a long-standing energy partnership.
The Governments of India and Bhutan have completed the Punatsangchhu-II Hydroelectric Project (PHEP II), a 1,020 MW run-of-the-river power plant in Bhutan's Wangdue Phodrang district. The dam sits about 20 km downstream of Wangdue Bridge on the Punatsangchhu river, with the underground powerhouse located at Kamechu, Dagar Gewog. Advertisement
According to official sources, the project represents another major milestone in our successful energy partnership, as described by Prime Minister Modi before departure. Under a bilateral agreement, India has supported the development with funding and technical cooperation; past projects such as the 336 MW Chukha and 720 MW Mangdechhu hydropower plants have laid the groundwork for this expansion. Bhutan has relied heavily on hydropower both for domestic use and as a primary export to India.
The visit also coincided with Bhutan celebrating the 70th birthday anniversary of its Fourth King, His Majesty Jigme Singye Wangchuck, and participating in the Global Peace Prayer Festival. The Prime Minister of India attended cultural and spiritual engagements including the exposition of the Sacred Piprahwa Relics of Lord Buddha.The inauguration event underlines that India views its partnership with Bhutan as a key pillar of its neighbourhood-policy and a model for friendly relations.
In terms of technical details, the Punatsangchhu-II project is a run-of-the-river hydro facility developed jointly by the two governments. While financing and implementation details vary by project, earlier Bhutan hydro projects carried a mix of Indian grants and loans, illustrating the deep-rooted energy cooperation. The successful commissioning of one of the largest hydropower facilities in Bhutan signals the country's ambition to enhance energy exports and leverage its natural river resources further.
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