PR No – 10
13th November 2025
New Delhi
India’s commitment to Hydropower cooperation and deepening economic ties with Bhutan
New Delhi, 13th November 2025: Prime Minister Narendra Modi’s visit to Bhutan reaffirms India’s commitment to both economic and cultural co-operation fronts between the two countries. “India’s commitment to economic growth of Bhutan is strengthened by the inauguration of the 1,020 MW Punatsangchhu-II hydropower project, marking a new phase in Bhutan’s electricity exports to India” says Mr. Rajeev Juneja, President, PHDCCI.
Further, recommencement of work on the 1,200 MW Punatsangchhu-I project with a concessional line of credit of ₹40 billion by India for Bhutan’s energy sector enforces mutual trust and sustainable partnership, he added.
Hydropower remains a key driver of economic growth, contributing significantly to national revenue, export incomes, and infrastructure development for Bhutan. Hydropower partnership serves as both an economic and strategic support and environmental sustainability across the region.
“For India, power imports from Bhutan will contribute to our clean energy commitment, regional energy security, and integration of renewable resources within its grid”, he said.
“The sanctification of the Royal Bhutan Temple in Rajgir and allocation of land in Varanasi for a Bhutanese temple and guest house exquisitely reflects the cultural and spiritual bond between India and Bhutan” said Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI.