The 1,020 MW Punatsangchhu-II project lifts Bhutan's generation capacity by nearly 40 per cent

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The 1,020 MW Punatsangchhu-II project lifts Bhutan's generation capacity by nearly 40 per cent

7 October 2026

The 1,020 MW Punatsangchhu-II hydroelectric project stands on the Punatsangchhu river in Wangdue Phodrang dzongkhag.
It was inaugurated by Prime Minister Narendra Modi and the King of Bhutan, Jigme Khesar Namgyel Wangchuck.
The project cost Rs 37,778 million, met by India as a 30 per cent grant and a 70 per cent loan.
It is a run-of-the-river plant with six units; unit 6 of 170 MW was connected in August 2025 and the other five were commissioned between December 2024 and July 2025.
The six units have supplied more than 1.3 billion units of electricity to Bhutan's grid, earning about Nu 4.9 billion.
The project raises Bhutan's total power generation capacity by nearly 40 per cent.

Capacity: 1,020 MW River: Punatsangchhu Dzongkhag: Wangdue Phodrang Cost: Rs 37,778 million Units: 6 Capacity increase: nearly 40 per cent

Why it matters for exams: Punatsangchhu-II is the single largest addition to Bhutan's hydropower capacity and is funded on the grant-plus-loan pattern India uses in Bhutan.

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7 October 2026 Source: The Tribune

In plain words

Run-of-the-river Run-of-the-river hydropower — A plant that uses the river's own flow with little or no large storage reservoir.

Dzongkhag Dzongkhag — A district of Bhutan, the country's main unit of local administration.