Embassy of IndiaThimphu

Joint Press Release on the visit of Minister for Power and Housing & Urban Affairs of India to Bhutan

Government of India and Royal Government of Bhutan

Thimphu, Bhutan | 9 April 2026

1. 1. At the invitation of H.E. Lyonpo Gem Tshering, Minister for Energy and Natural Resources, Royal Government of Bhutan (RGoB), the Minister for Power, Housing & Urban Affairs, Government of Republic of India (GoI), H.E. Mr. Manohar Lal is on an official visit to Bhutan from 09 to 12 April 2026.
2. 2. His Excellency will grace the first concrete pour ceremony at the Punatsangchhu-I Hydroelectric Project dam on 10 April 2026. This marks a momentous occasion for the people of both the nations to witness the commencement of dam works at the 1200 MW Punatsangchhu-I Hydroelectric Project.
3. 3. During the visit, the Protocol to the Agreement between the Government of the Republic of India and the Royal Government of Bhutan was signed for the Punatsangchhu-II Hydroelectric Project Export Tariff on 9 April 2026 in Thimphu, Bhutan. The 1020 MW Punatsangchhu-II Hydroelectric Project was jointly inaugurated by H.E. Shri Narendra Modi, Prime Minister of India and His Majesty Jigme Khesar Namgyel Wangchuck, The King of Bhutan, on 11 November 2025 and commenced export of surplus power to India from 19 September 2025 at a mutually agreed starting tariff.
4. 4. GoI and RGoB also signed the methodology for accounting of the reactive power exchange between India and Bhutan that will be effective from 1 May 2026. This will contribute to enhancing grid stability, ensure fair and transparent accounting of power flows, and further strengthen cross-border interconnections between the two countries.
5. 5. The India-Bhutan partnership is built on long-standing energy cooperation, deep understanding and friendship across all economic and developmental areas of cooperation. The visit will further strengthen multi-faceted energy collaboration between the two countries encompassing power generation, electricity trade, transmission connectivity, equipment, training and technical collaboration.