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Strategic Power Alliance: India and Bhutan Forge Enhanced Energy Partnership

Agency Source: The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending New Bureau Release: February 4, 2026 | 00:31 IST
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In a significant development for regional energy security, India and Bhutan have initiated high-level discussions to strengthen bilateral cooperation in the power sector, with a focus on optimizing the commercial output of the Punatsangchhu-II Hydroelectric Project (1020 MW). According to a statement from India's Union Power Ministry, the deliberations centered on enhancing the operational efficiency and economic viability of this critical infrastructure asset. This move underscores a deepening strategic partnership aimed at leveraging Bhutan's substantial hydropower potential to meet India's growing energy demands while bolstering Bhutan's economic development through sustainable energy exports. The collaboration represents a model of South-South cooperation, combining technical expertise with shared environmental and economic objectives. Analysts view this as a calculated step to reinforce energy interdependence, reduce carbon footprints, and stabilize regional power grids. The Punatsangchhu-II project, a cornerstone of this initiative, is poised to become a key contributor to the energy portfolios of both nations, aligning with broader goals of energy security and climate resilience in the Himalayan region.

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