India and Bhutan Sign Key Power Agreements During Minister Manohar Lal’s Visit
NEW DELHI: Union Minister Manohar Lal Khattar arrived in Bhutan on a four-day official visit, reaffirming the strong partnership between India and Bhutan in clean energy and sustainable development.
The visit highlights the growing cooperation between the two nations in energy security, hydropower and cross-border electricity trade.
Meeting with Bhutan leadership
During the visit, the minister met Tshering Tobgay, Prime Minister of Bhutan, where both sides reaffirmed their commitment to strengthening bilateral collaboration in clean energy and sustainable development.
He also held discussions with Gem Tshering, Bhutan’s Minister for Energy and Natural Resources, focusing on expanding cooperation in hydropower, renewable energy and regional power trade.
Two key agreements signed
India and Bhutan signed two major agreements aimed at strengthening bilateral power cooperation:
1. Tariff Protocol for Punatsangchhu-II Hydroelectric Project
The agreement formalises the tariff framework for the Punatsangchhu-II Hydroelectric Project, a 1020 MW project jointly inaugurated in November 2025 by Narendra Modi and Jigme Khesar Namgyel Wangchuck. The project has been exporting surplus power to India since September 2025.
2. Methodology for Reactive Energy Accounting
The two countries also signed a technical framework for reactive power exchange, aimed at improving grid stability, efficiency in electricity exchange and streamlining bilateral power trade.
Enhanced energy cooperation framework
Both nations agreed to strengthen an enhanced bilateral institutional framework to regularly review and coordinate ongoing and future energy initiatives. Areas of collaboration include:
- Non-hydro renewable energy
- Cross-border transmission
- Project financing
- Capacity building and institutional partnerships
The visit is expected to open new avenues for cooperation and deepen the long-standing India–Bhutan partnership in the power sector.