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India and Bhutan are strengthening their power sector cooperation, focusing on hydropower projects such as the optimization of the 1020 MW Punatsangchhu-II and the commissioning of the 1200 MW Punatsangchhu-I. Recent discussions in New Delhi, involving key ministers from both countries, also addressed the Sankosh Hydropower Project and included the signing of a Memorandum of Understanding on renewable energy cooperation, with India committing Rs 4,000 crore in financial support for Bhutan's economic development.