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Punatsangchhu-I Hydroelectric Project

April 12, 2026

Work on Bhutan's 1,200 MW Punatsangchhu-I hydropower project has resumed recently after a seven-year suspension, with India's Power Minister attending a key concrete pouring ceremony marking the restart of dam construction.

About Punatsangchhu-I Hydroelectric Project:

  • It is a 1200 MW run-of-the-river scheme located on the left bank of the Punatsangchhu River in the Southern Himalayas in Bhutan.
  • It is presently the largest hydropower project under construction in Bhutan.
  • The project is being implemented by the Punatsangchhu-I Hydroelectric Project Authority (PHPA), an autonomous body of the Royal Government of Bhutan and the Government of India.
  • It is funded by the Government of India (GoI): 40% Grant and 60% Loan at 10% annual interest, repayable in 12 equated annual installments commencing one year after the mean date of operation.
  • All the surplus power from the project will be exported to India.

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