Construction of Bhutan's 1,200-MW Punatsangchhu-I hydropower project has resumed after a nearly seven-year hiatus, marked by a concrete pouring ceremony attended by Indian Power Minister Manohar Lal and Bhutan Energy Minister Gem Tshering. The project, funded by India with 40% as a grant and 60% as a loan, aims to enhance Bhutan's energy capacity significantly. Originally initiated in 2008 with a target completion date of 2015, the project faced multiple delays due to design changes and technical issues, leading to its suspension in 2019. In July 2025, both countries agreed to resume construction along with slope stabilization measures following extensive consultations. As of February 2026, the financial progress stands at approximately ₹8,785 crore (about $1.06 billion USD), or 93.7% of the approved cost, with physical progress nearing 88%. The project is expected to generate around 5,670 million units of electricity annually, with surplus power to be exported to India, thereby contributing significantly to Bhutan's installed capacity, which will rise to nearly 4,700 MW.