India and Bhutan have inaugurated the 1,020 MW Punatsangchhu-II hydroelectric project to increase Bhutan’s hydropower capacity by nearly 40 per cent.
India has extended a Rs 40 billion concessional line of credit to Bhutan for energy projects, underscoring the two countries’ deepening energy cooperation. The two countries also agreed to resume work on another long-stalled hydro project and signed a memorandum of understanding on renewable energy.