Bhutan’s 1020 MW power leap! India’s backing helps nation boost energy by 40% , says MEA

Speaking on the inaugurated project, Indian Ministry of External Affairs spokesperson Randhir Jaiswal wrote on X: "In the presence of the sacred Holy Relics of Lord Buddha, PM @narendramodi and His Majesty Jigme Khesar Namgyel Wangchuck, the King of Bhutan jointly inaugurated the 1020 MW Punatsangchuu-II Hydroelectric Project."

Jaiswal further said: "This HEP, which enhances ’s power generation capacity by 40%, will supply electricity to both countries. With the completion of the project, yet another milestone has been achieved in the dynamic and mutually beneficial - energy partnership."

Modi was on a two-day visit to Bhutan on November 11 and 12,

During the visit, Prime Minister Modi joined the people of Bhutan in marking the 70th Birth Anniversary of Fourth Druk Gyalpo in Changlimithang on 11 November 2025 as the Guest of Honour.

Prime Minister Modi also took part in the ongoing Global Peace Prayer Festival in Thimphu.

Bhutan King Jigme Khesar Namgyel Wangchuck appreciated the presence of the Holy Piprahwa Relics of Lord Buddha from India in Thimphu for public veneration during the Festival.

Prime Minister Modi interacted with Prime Minister of Bhutan Dasho Tshering Tobgay when they discussed key areas of bilateral cooperation and regional and global issues of mutual interest.

Prime Minister Modi reaffirmed India’s unwavering support to Bhutan’s 13th Five Year Plan, including the Economic Stimulus Programme, emphasising India’s commitment to actively assisting Bhutan in achieving its key development priorities and advancing sustainable growth across sectors. The Bhutanese side appreciated India’s assistance for Bhutan’s 13th Five Year Plan period for various projects under implementation across Bhutan and their contribution to the country’s development.

Prime Minister Modi conveyed full support of the Government of India for the realisation of the Kings’s vision for the Gelephu Mindfulness City.

He announced the decision to establish an Immigration Check Post at Hatisar, Assam, to facilitate the easy movement of investors and visitors to Gelephu. His Majesty appreciated the Government of India’s support for the construction of Gyalsung academies.

"The leaders welcomed the understanding reached regarding the resumption of work on the main dam structure of 1200 MW Punatsangchhu-I hydroelectric project and agreed to work for expeditious completion of the project. Once completed, Punatsangchhu-I will be the largest hydroelectric project jointly developed by the two Governments," read a statement issued by the Indian government.

The Bhutanese side expressed appreciation for the announcement by the Government of India of a concessional Line of Credit of INR 40 billion to fund the energy projects in Bhutan.