The Union Minister of Power and Housing & Urban Affairs, Shri Manohar Lal, arrived in Bhutan today for a 4-day visit. His visit marks another important step in the deepening of India–Bhutan bilateral ties.
India and Bhutan share exemplary bilateral relations, characterized by mutual trust, understanding, and close cooperation across sectors. The visit underscores the shared vision of both countries to further strengthen collaboration in energy security and sustainable development.
Shri Manohar Lal called on the Prime Minister of Bhutan, Shri Tshering Tobgay. During the meeting the two leaders reaffirmed the shared commitment of the two nations to advance cooperation in clean energy and sustainable development.
In another meetiing with the Lyonpo Gem Tshering, Minister for Energy & Natural Resources, Royal Government of Bhutan, Shri Manohar Lal held discussions that focused on strengthening ongoing cooperation in the hydropower sector and on future avenues in renewable energy and regional power trade.
Expanding the scope of cooperation in the power sector, India and Bhutan have established an enhanced bilateral institutional framework mechanism. This mechanism will enable regular review and coordination of ongoing and future initiatives between the two countries to further strengthen collaboration. Key areas of cooperation include non-hydro energy, cross-border transmission, project financing, capacity building, and institutional partnerships.
On this occasion the two sides signed:
(i) Tariff Protocol of Punatsangchhu-II Hydroelectric Project, marking another step in mutually beneficial hydropower cooperation between the two countries. The 1020 MW Punatsangchhu-II Hydroelectric Project was jointly inaugurated by Shri Narendra Modi, Prime Minister of India and Shri 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.
(ii) The Methodology for Reactive Energy Accounting of the reactive power exchange, a technical framework aimed at enhancing grid stability, improving efficiency in cross-border electricity exchange, and streamlining bilateral power trade.
The engagements during the visit are expected to pave the way for new avenues of collaboration, contributing to the continued prosperity and well-being of both nations.
