India-Bhutan Energy Ties Strengthen as 1,200 MW Punatsangchhu-1 Hydropower Project Resumes After 7-Year Halt

India and Bhutan have reached a major milestone in bilateral energy cooperation. Work on Bhutan's 1,200 MW Punatsangchhu-1 hydropower project has resumed after a seven-year suspension. This India-funded project, stalled due to geological challenges, is now expected to be completed within the next five years.

Muskan Kumawat
Muskan Kumawat Verified Local Voice • 13 Apr, 2026 Author
April 11, 2026 • 11:37 PM  0
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India-Bhutan Energy Ties Strengthen as 1,200 MW Punatsangchhu-1 Hydropower Project Resumes After 7-Year Halt
“India-Bhutan Energy Ties Strengthen as 1,200 MW Punatsangchhu-1 Hydropower Project Resumes After 7-Year Halt”
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11 Apr 2026
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India-Bhutan Energy Ties Strengthen as 1,200 MW Punatsangchhu-1 Hydropower Project Resumes After 7-Year Halt
India-Bhutan Energy Ties Strengthen as 1,200 MW Punatsangchhu-1 Hydropower Project Resumes After 7-Year Halt

Great news for India and Bhutan in terms of friendly relations and energy cooperation. The construction works of the large-scale 1,200 MW hydropower plant Punatsangchhu-1, located in Bhutan, have been resumed after a break of seven years. During the official visit to Bhutan by India's Energy Minister, Manohar Lal Khattar, on April 10, he participated in the concrete pouring ceremony, which is regarded as the starting point of building the dam.

The construction was suspended in 2019 due to geological concerns. However, after solving all the existing technical concerns related to the landscape and mountainous regions and making sure that the place is safe to build a hydropower station, the construction works were finally resumed.

This project is the largest joint hydropower venture between India and Bhutan to date, fully funded by India. Speaking at the ceremony, Energy Minister Manohar Lal Khattar said that this project is a shining example of the strong and deep energy ties between India and Bhutan. He commended India's financial and technical support and the joint efforts of both countries to ensure safe construction.

Muskan Kumawat Verified Local Voice • 13 Apr, 2026 Author

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