Punatsangchhu-II Hydroelectric Project: A Milestone in India–Bhutan Energy Cooperation

Punatsangchhu-II Hydroelectric Project: A Milestone in India–Bhutan Energy Cooperation

Introduction

The Punatsangchhu-II Hydroelectric Project (PHEP-II) marks a major achievement in India–Bhutan bilateral cooperation. Recently inaugurated by Prime Minister Narendra Modi and King Jigme Khesar Namgyel Wangchuck, the project highlights the strong energy partnership between the two Himalayan neighbours and reinforces India’s commitment to promoting clean and sustainable power in South Asia.

 

Location and Capacity

Situated on the Punatsangchhu River in Wangdue Phodrang district, Bhutan, the project is a run-of-the-river scheme designed to harness hydropower sustainably.

Installed capacity: 1,020 MW (6 units × 170 MW each).

Dam height: 91 metres; Dam length: 223.8 metres.

Underground powerhouse and diversion tunnel of ~877 metres length and 12 m diameter.

Development and Implementation

Joint venture: Government of India and Royal Government of Bhutan under an inter-governmental agreement.

Executed by the Punatsangchhu-II Hydroelectric Project Authority (PHPA-II).

Financed mainly through Indian assistance (both grants and loans).

The project faced multiple challenges — difficult geological conditions, river flooding, and the COVID-19 pandemic — leading to delay, but all six units were successfully synchronized by August 2025.

Significance

1. Clean Energy Expansion:
Adds over 1 GW of renewable capacity, strengthening Bhutan’s role as a green energy exporter and helping India meet its clean energy targets.

2. Economic Benefits for Bhutan:
Power exports to India generate vital revenue, supporting Bhutan’s GDP and social infrastructure.

3. Strategic Partnership:
Deepens India–Bhutan relations through cooperation in power, infrastructure, and regional connectivity.

4. Sustainability and Regional Model:
Demonstrates a balance between development and ecology through its run-of-the-river design, which minimizes large reservoir impacts.

Associated Developments

The inauguration coincided with celebrations for the 70th birth anniversary of Bhutan’s Fourth King, Jigme Singye Wangchuck.

President Droupadi Murmu earlier welcomed Bhutan’s participation in the International Big Cat Alliance and Global Biofuels Alliance, reflecting expanding India–Bhutan cooperation beyond energy.

The project follows earlier successful ventures such as Chukha (336 MW), Kurichhu (60 MW), Tala (1,020 MW), and Mangdechhu (720 MW) hydropower plants.

Exam Relevance (UPSC, State PSC, SSC, Banking)

Type: Infrastructure / International Relations / Environment & Energy topic

Key Facts to Remember:

Country: Bhutan

River: Punatsangchhu

Capacity: 1,020 MW

Partner: India–Bhutan

Type: Run-of-the-River Project

Year of Completion: 2025

Implementing Authority: PHPA-II

Significance: Strengthens India–Bhutan energy ties and regional clean-energy cooperation

Conclusion

The Punatsangchhu-II Hydroelectric Project stands as a symbol of friendship and sustainable growth between India and Bhutan. By generating over a gigawatt of clean electricity, it strengthens Bhutan’s economy, supports India’s green energy transition, and sets an example of cross-border cooperation in the Himalayan region.

Keywords: India-Bhutan relations, Hydropower, Clean Energy, Punatsangchhu-II, Renewable Energy, South Asia Cooperation.