25/05/2026
๐๐๐ฃ๐ ๐ฎ๐ป๐ฑ ๐ก๐ฉ๐ฉ๐ก ๐ฆ๐ถ๐ด๐ป๐ฒ๐ฑ ๐ฃ๐ผ๐๐ฒ๐ฟ ๐ฃ๐๐ฟ๐ฐ๐ต๐ฎ๐๐ฒ ๐๐ด๐ฟ๐ฒ๐ฒ๐บ๐ฒ๐ป๐ ๐ณ๐ผ๐ฟ ๐ฃ๐๐ป๐ฎ๐๐๐ฎ๐ป๐ด๐ฐ๐ต๐ต๐-๐๐ ๐๐๐ฑ๐ฟ๐ผ๐ฒ๐น๐ฒ๐ฐ๐๐ฟ๐ถ๐ฐ ๐ฃ๐ฟ๐ผ๐ท๐ฒ๐ฐ๐
On 20 May 2026, Druk Green Power Corporation (DGPC) and NTPC Vidyut Vyapar Nigam Limited (NVVN) signed the Power Purchase Agreement (PPA) for the sale of surplus electricity generated by the Punatsangchhu-II hydroelectric project to India after meeting domestic demand. The signing of the PPA marked yet another very significant milestone in the very successful and mutually beneficial cooperation in the energy sector between the two countries, which is considered the cornerstone of the exemplary friendly relationship that Bhutan and India enjoy.
The Punatsangchhu-II project was implemented under the long standing Government to Government modality for development of hydropower projects in Bhutan with the technical and financial support of the Government of India. Under this arrangement, the Chhukha, Kurichhu, Tala, Mangdechhu and the Punatsangchhu-II hydropower plants with installed capacity of over 3,100 MW are already in operation and the 1,200 MW Punatsangchhu-I project is currently under construction.
Today, grid electricity supply has been reached to almost every household in the remotest corners of Bhutan. The reliable and affordable availability of electricity from these power plants has fueled Bhutanโs economic growth. The surplus clean green surplus electricity generated from these power plants is exported to India especially during the critical summer months.
The 1,020 MW Punatsangchhu-II project was inaugurated by His Majesty the King of Bhutan and H.E. Shri Narendra Modi, Prime Minister of India on 11 November 2025. The project commenced export of surplus power to India in September 2025 at a mutually agreed to starting tariff of Rs. 5.10 per unit.
Since the commissioning of the first unit in December 2024, the Punatsangchhu-II project generated over 4,200 MU of electricity till the end of April 2026 and earned Nu. 13.35 billion in revenues from both domestic supply and export of surplus electricity.
The PPA was signed between Dasho Chhewang Rinzin, Managing Director of DGPC and Ms. Renu Narang, CEO of NVVN. The Chairman and Managing Director of NTPC India and other senior officers from NTPC and NVVN attended the virtual signing ceremony. In Thimphu, the Chairman of the DGPC Board and the DGPC management attended the signing ceremony.
The event underscored the shared commitment to deepening bilateral energy ties and fostering cross-border collaboration in the power sector.
๐๐ฏ๐ผ๐๐ ๐ก๐ฉ๐ฉ๐ก
NVVN is a wholly owned subsidiary of NTPC Limited, Indiaโs largest power utility. NVVN specializes in power trading and plays a key role in facilitating energy exchange across the region.