The lake outburst, known as a Glacial Lake Outburst Flood, can cause sudden and extensive water flow.
Water is moving from the Mo Chhu River into the Sankosh River and its tributaries.
Red alert remains in force for the river system due to possible flooding and debris.
Emergency teams are distributing dry food, clean water, and portable toilets at relief centres.
Authorities are coordinating with Bhutanese officials to monitor water levels and safety.
Authorities issued a red alert and asked residents in vulnerable areas to move to safer locations such as school buildings used as temporary shelters.
National and State Disaster Response Forces, along with civil defence volunteers, are providing food, drinking water, sanitation facilities and monitoring the situation.
Around 4,000‑5,000 people have already been moved to shelters, with an additional 6,000+ relocated as a precaution.
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