India

India Powers Up Bhutan with ₹4,000 Crore Energy Boost

Published: 18 September 2026 · 1 min read

What Happened

India and Bhutan welcomed a ₹4,000 crore Line of Credit for energy projects during S Jaishankar's visit to Bhutan. The two countries reviewed progress on major hydropower projects, including the 1,020 MW Punatsangchhu-II project, and discussed connectivity, digital payments, rail links and other development initiatives.

Key Takeaways

The new funding strengthens India's role in Bhutan's energy and infrastructure development while deepening a key regional partnership. Hydropower remains the backbone of India-Bhutan cooperation, with both sides pushing ahead on projects that can boost Bhutan's economy and enhance regional energy security.

Sources

ANI News, Economic Times