India and Bhutan are deepening their energy partnership with two landmark agreements aimed at ramping up electricity trade. The deals, centered on the Punatsangchhu-II hydroelectric project, cover tariff determinations and reactive power management protocols, as announced by India’s Ministry of Power.
The signing took place in Thimphu between Power Minister Manohar Lal Khattar and Bhutan’s Energy Minister Gem Tshering. This follows the project’s commissioning by PM Narendra Modi and King Jigme Khesar Namgyel Wangchuck last November, with power exports to India commencing in September 2025.
These pacts are game-changers. The tariff agreement fortifies financial structures for hydropower ventures, fostering long-term reliability in energy supply. The reactive energy framework enhances technical interoperability, bolstering grid resilience and facilitating seamless power flows across borders.
During his Bhutan visit, Khattar engaged with PM Tshering Tobgay on expanding clean energy initiatives and sustainable practices. The enduring India-Bhutan bond, built on trust, continues to yield fruitful collaborations in energy and beyond.
A new institutional setup will oversee advancements in renewables, transmission infrastructure, funding models, skill development, and joint ventures. Regular coordination mechanisms ensure these areas progress steadily.
This strategic alignment not only secures energy needs but also paves the way for innovative projects, promising economic benefits and environmental sustainability for both nations in the years ahead.
