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Punatsangchhu-II Hydroelectric Project

Feb. 4, 2026

India and Bhutan recently deliberated on the commercial optimization of power output from the Punatsangchhu-II Hydroelectric Project (1020 MW) and the early commissioning of the Punatsangchhu-I Hydroelectric Project (1200 MW).

About Punatsangchhu-II Hydroelectric Project:

  • It is a run-of-the-river hydroelectric power project.
  • Location: It is located in Bhutan on the right bank of the Punatsangchhu River.
  • The project is being developed under an Inter-Government Agreement (IGA) between the Royal Government of Bhutan and the Government of India.
  • It is funded by the Government of India (GoI).

Key Facts about Punatsangchhu-I Hydroelectric Project:

  • It is a 2GW run-of-the-river hydroelectric power project.
  • Location: It is located in Bhutan on the left bank of Punatsangchhu River.
  • The project is being developed by Punatsangchhu I Hydroelectric Project Authority, an entity formed under a bilateral agreement signed by the Bhutanese government and the Government of India (GoI) in 2007.
  • It is funded by the Government of India (GoI).

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