Bhutan's 1020 MW Punatsangchhu-II Hydroelectric Project has been fully commissioned with the synchronization of its last 170 MW unit in August 2025 . This would increase Bhutan's installed power capacity by almost 40% , which is a significant step in India-Bhutan clean energy cooperation and regional energy security .
Project Highlights
- Situated at the bank of Punatsangchhu River in Wangdue Phodrang district.
- Installed capacity: 1020 MW ; cost: 37,778 million
- Assisted by India: 30% grant, 70% loan at 10% interest.
- More than 1.3 billion units of electricity already produced, revenues Nu 4.9 billion.
India-Bhutan Energy Co-operation
Punatsangchhu-II is the fifth large hydropower project funded by India after Chukha, Kurichhu, Tala and Mangdechhu . To date, all these projects have added 3,500 MW to Bhutan's capacity, of which surplus power is wheeled to India, reinforcing bilateral economic ties.
Strategic & Environmental Value
As a run-of-the-river project , Punatsangchhu-II can be assured of low environmental impact and little displacement. It would facilitate South Asia's green energy priorities, in line with climate commitments and sustainable development.
Challenges and Completion
Construction started in 2010 but was delayed because of geological problems, floods and the COVID-19 pandemic . Despite the setbacks, the project got completed with technical expertise from Indian agencies such as WAPCOS and NIRM.
Future Outlook
Under the Joint Vision Document 2024 , the two countries will continue cooperation including on the Punatsangchhu-I project of 1200MW . This cooperation has set an example for cross-border development of clean energy and regional integration .
Month: Current Affairs - August 31, 2025
Category: current affairs daily