The India-Bhutan energy partnership reached a major milestone with the operationalization of the fifth unit of the 1,020 MW Punatsangchhu-II hydropower project on 17 July 2025, adding 850 megawatts of energy into Bhutan's national grid. 

The first and second units were commissioned in December 2024, the third in March 2025, and the fourth in May 2025. The sixth and final unit is set to go online in August 2025.

The Punatsangchhu-II project is a run-of-the-river facility located in Bhutan's Wangdue Phodrang district. It was funded primarily by the Government of India with 30% as grant and 70% as loan. It was supported by Indian engineering consultancies, Water and Power Consultancy Services for engineering and design and the National Institute of Rock Mechanics for modeling and geotechnical engineering services. Construction of the project began in December 2010. 

Related link 

India-Bhutan Energy Ties Surge Ahead With Punatsangchhu-II Milestone  

Press Release