India and Bhutan Deepen Power and Water Cooperation

India Manufacturing Review Team
Saturday, 08 August 2026

India and Bhutan deepen cooperation in hydropower, renewable energy, electricity trade and transboundary water management, reviewing key projects and strengthening mechanisms for sustainable energy and water-resource development.

India and Bhutan have renewed their determination to enhance cooperation between the two nations in the area of power and water resources through consultations among the relevant Ministers of the two nations. This has seen the two nations discuss issues pertaining to hydropower, renewable energy, cross-border power trade, grid interconnection, and the management of transboundary rivers. The meetings at the ministerial level take place in New Delhi and underscore the significance of energy and water cooperation in India-Bhutan relations.

Bhutan’s Minister for Energy and Natural Resources Lyonpo Gem Tshering meets individually with India’s Union Minister for Power and Housing & Urban Affairs, Manohar Lal, and Union Minister for Jal Shakti, C.R. Paatil. The meetings serve as an opportunity to discuss the status of various bilateral projects and further institutionalise cooperation.

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In the context of energy-sector deliberations, India and Bhutan assess cooperation in hydroelectricity, cross-border trade in electricity, transmission interconnections, renewable energy, institutional cooperation, and capacity-building. India and Bhutan also assess the functioning of the bilateral mechanisms that facilitate energy-sector engagement.

Some of the significant hydropower projects that have been discussed include Punatsangchhu-I, Punatsangchhu-II, Sankosh, and Chukha. All these projects are significant because they have been part of the relationship between the two nations as far as energy is concerned. India continues to state its support for Bhutan in its power sector, while Bhutan appreciates the help it has received from India.

The two nations realise the benefits that increased cooperation will bring towards ensuring sustainable development and energy security in the region. They thus emphasise the significance of continuous dialogue and coordination in the implementation of win-win projects. Increased cooperation in renewable energy and power transmission is also anticipated to facilitate the new energy landscape in the region.

Another key aspect of the bilateral talks revolves around water resources. Lyonpo Gem Tshering meets C. R. Paatil in order to discuss matters pertaining to the cooperation between the two countries in terms of border river management, flood forecasting, flood management, and sharing of hydrological information.

Punatsangchhu-I Hydroelectric Project and its implementation are another subject that is analysed, and both parties examine ways to speed up the process. The delegations also deliberate on ways to enhance the hydro-meteorological infrastructure of Bhutan and improve the current process of hydrological data sharing in transboundary rivers.

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Both India and Bhutan ended the discussion with their renewed determination to manage the transboundary water resources sustainably and mutually. It is mutually agreed by both sides that they need to enhance cooperation through institutional, technical, and mutual confidence-building measures.

These discussions show the growing strategic relationship between India and Bhutan in terms of clean energy, water resources, and regional connectivity. Further cooperation in these fields would help sustain development, enhance regional energy security, and create lasting gains for the two neighbouring nations.

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