Success Stories

Punatsangchhu Hydroelectric Power Project (PHEP)

Punatsangchhu Hydroelectric Power Project (PHEP) is located in Bhutan, on the Punatsangchhu (also known as Sankosh) River, a major tributary of the Brahmaputra. It lies mainly in the Wangdue Phodrang district of western Bhutan.

There are two major projects on this river: Punatsangchhu-I (PHEP-I) and Punatsangchhu-II (PHEP-II). Overview of the Punatsangchhu Hydroelectric Projects

1. Punatsangchhu-I Hydroelectric Project (PHEP-I) Capacity: 1200 MW Location: Wangdue Phodrang district, Bhutan River: Punatsangchhu Type: Run-of-the-river project India–Bhutan collaboration: Funded by the Government of India through 70% loan + 30% grant model. Executed under the bilateral hydropower cooperation programme.

Key features Concrete gravity dam of about 136 m height. Two underground powerhouses. Part of Bhutan’s plan to export surplus hydropower to India. Issues faced Project has been delayed for years due to: Slope instability and landslides at the dam site Geological challenges Cost escalation Safety concerns led to redesigning portions of the project.

2. Punatsangchhu-II Hydroelectric Project (PHEP-II) Capacity: 1020 MW Location: Downstream of PHEP-I on the same river India–Bhutan joint venture with similar funding pattern. Key features Run-of-the-river scheme with a dam and an underground powerhouse. Uses regulated water discharge from PHEP-I for power generation. Status Progress has been more stable compared to PHEP-I. Part of Bhutan’s plan to enhance hydropower exports. Importance of Punatsangchhu Projects Strengthens India–Bhutan energy cooperation (Bhutan’s hydropower is a major part of its economy).

Helps Bhutan maintain its “hydropower-driven economy” through electricity sales to India. Supports India’s goal of clean energy imports and grid stability. Contributes to regional clean energy goals and climate-friendly development.

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