India’s Ambassador to Bhutan, Sandeep Arya, on Tuesday underscored the significance of the 1,020 MW Punatsangchhu-II Hydroelectric Project — a joint venture between India and Bhutan — which will increase Bhutan’s hydropower generation capacity by 40% and allow the export of surplus electricity to India. The project is set to further strengthen the energy partnership between the two nations.
Speaking to ANI, Arya described hydropower as a cornerstone of India-Bhutan cooperation, noting Bhutan’s estimated 35,000 MW hydropower potential. “Hydropower is a major strength for Bhutan, given its abundant river systems and immense potential of around 35,000 MW. The 1,020 MW project, which will be inaugurated jointly by the leaders of both countries, is a significant addition. It will boost Bhutan’s installed capacity by about 40%, driving the country’s economic growth. The power generated will serve Bhutan’s needs, with surplus electricity exported to India. Power generation peaks during the summer months when Bhutan’s rivers are in full flow,” he said.
Arya pointed out that the project aligns well with India’s rising power demand, particularly in summer when Bhutan’s glacial rivers produce maximum output. “Since most rivers are glacial, the power generation peaks in summer — a period when India also faces high electricity demand. This creates a strong synergy. The Punatsangchhu-II project, set to be inaugurated tomorrow, will not only serve Bhutan’s people and economy but also supply much-needed electricity to India,” he explained.
The ambassador also emphasized the growing importance of connectivity between the two countries — including physical, digital, and cultural links. He highlighted ongoing efforts to enhance trade routes, road infrastructure, and future rail connectivity. “Connectivity has several dimensions — physical connectivity is crucial, as about 80% of Bhutan’s trade is with India. Even its trade with other countries passes through India. Strengthening trade infrastructure, roads, and future rail links are key areas of discussion. Digital connectivity is another focus, with cooperation in FinTech and QR-based payment systems enabling seamless transactions between Indian and Bhutanese travelers,” Arya said.
He added that people-to-people ties form the foundation of India-Bhutan relations, rooted in shared spirituality, yoga, cinema, and cultural exchanges. “The people-to-people connection is very deep, reflecting the unique and special friendship between our countries. These bonds, nurtured over decades, continue to strengthen through cultural and spiritual engagement,” he said.
Arya highlighted that both nations share complementary development visions — India’s Viksit Bharat 2047 and Bhutan’s goal of becoming a high-income economy — creating natural synergy in economic and developmental cooperation. “Both India and Bhutan are pursuing ambitious development goals. There’s a strong alignment in trade, education, technology, and other areas. The partnership, often described as India’s closest relationship with a neighboring country, holds immense potential for future growth,” he said.
He added that the upcoming engagements between the two nations would aim to elevate the partnership to new levels. “It is a relationship built on trust and mutual respect, and with the support of both governments, we aim to take it to even greater heights,” Arya noted.
Prime Minister Narendra Modi will undertake a State visit to Bhutan from November 11 to 12. During his visit, he will participate in the Global Peace Prayer Festival organized by the Royal Government of Bhutan.
