Prime Minister Narendra Modi and his Bhutan counterpart, Tshering Tobgay, decided to engage in the development of new energy projects in the fields of hydropower, solar and green hydrogen, with the participation of Indian entities as strategic partners.

The India-Bhutan joint vision document on energy launched during Modi's visit to Thimphu aims to generate additional revenue generation for the Himalayan nation.

India and Bhutan will review and finalise project-specific implementation modalities for new projects, including reservoir hydro projects.

Mutually beneficial hydropower cooperation with Bhutan is a key pillar of bilateral economic cooperation. For Bhutan, hydropower development continues to be a vital catalyst for socio-economic development and revenues from hydropower constitute a significant portion of its total revenues.

India's imports of electricity from Bhutan amounted to Rs 2,448 crore in 2022, as per the Government of Bhutan's data. The 1,020 MW Punatsangchhu-II hydropower project is expected to be commissioned this year.