Union Minister of Power and Housing and Urban Affairs Manohar Lal arrived in Bhutan for a four-day visit that marked another step in the deepening of India-Bhutan bilateral ties. The visit underscored a shared vision to further strengthen collaboration in energy security and sustainable development.

He called on the Prime Minister of Bhutan Tshering Tobgay and the meeting reaffirmed the shared commitment of the two nations to advance cooperation in clean energy and sustainable development. He also held discussions with Lyonpo Gem Tshering, Minister for Energy and Natural Resources, that focused on strengthening cooperation in the hydropower sector and on future avenues in renewable energy and regional power trade.

Expanding the scope of cooperation in the power sector, the two countries established an enhanced bilateral institutional framework mechanism to enable regular review and coordination of ongoing and future initiatives. Key areas of cooperation include non-hydro energy, cross-border transmission, project financing, capacity building and institutional partnerships that will support long-term energy collaboration.

On this occasion the two sides signed the Tariff Protocol of the Punatsangchhu-II Hydroelectric Project and the Methodology for Reactive Energy Accounting of the reactive power exchange. The 1020 Megawatt (MW) Punatsangchhu-II Hydroelectric Project was jointly inaugurated by Prime Minister Narendra Modi and His Majesty Jigme Khesar Namgyel Wangchuck on 11 November 2025 and commenced export of surplus power to India from 19 September 2025 at a mutually agreed starting tariff. The reactive energy methodology is intended to enhance grid stability, improve efficiency in cross-border electricity exchange and streamline bilateral power trade.

The engagements during the visit are expected to pave the way for new avenues of collaboration and to contribute to the continued prosperity and well-being of both nations. Officials from both sides will continue consultations to implement agreed initiatives and to explore further projects and capacity building measures that support sustainable development and regional energy integration.