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India, Bhutan to explore new hydropower projects

Tuesday, 26 Mar 2024
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The India-Bhutan joint vision document on energy launched during Prime Minister Narendra Modi's visit to Thimphu this week will explore new hydropower projects, apart from green and solar energy projects.

PM Modi and his counterpart, Tshering Tobgay will collaborate in the development of new energy projects in areas of hydropower, solar and green hydrogen, with the participation of Indian entities who will be strategic partners. The two countries will review and finalise project-specific implementation modalities for new projects, including reservoir hydro projects.

Mutually beneficial hydropower cooperation with Bhutan is a key pillar of bilateral economic cooperation. The 1,020 MW Punatsangchhu-II hydropower project is expected to be commissioned this year. India will also facilitate necessary access to financing from financial institutions in India as well as market for power sale for new and upcoming hydropower projects in Bhutan, as per the document. 

For Bhutan, hydropower development continues to be a vital catalyst for socio-economic development and revenues from hydropower constitute a significant portion of its total revenues. 

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