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India announces Rs 4,000 cr credit line for Bhutan energy projects

PTI
Updated: November 11th, 2025, 22:43 IST
in Home News, International
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Thimphu: India and Bhutan Tuesday inaugurated a 1,020-MW hydropower project built with Indian assistance as Prime Minister Narendra Modi said progress and prosperity of the two countries is closely linked and that there will be greater focus on boosting connectivity.

Modi and King Jigme Khesar Namgyel Wangchuck inaugurated the Punatsanchchhu-II project following their wide-ranging talks. Electricity generated from the project will be supplied to both countries.

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The Indian side also announced a concessional credit line of Rs 4,000 crore to fund energy projects in Bhutan.

“Energy cooperation remains a key pillar of the India-Bhutan partnership. Today, we inaugurated the Punatsangchhu-II Hydropower Project. This is an enduring symbol of friendship between our countries,” Modi said on social media.

The two leaders exchanged views to further enhance and strengthen bilateral ties and held discussions on regional and global issues of mutual interest.

King Jigme Khesar conveyed condolences on the loss of lives in the Delhi blast and his appreciation for India’s support for Bhutan’s socio-economic development.

The two leaders also witnessed the finalisation of three pacts that will provide for cooperation in renewable energy, healthcare and medicine, and mental health services.

Earlier, addressing an event to mark the 70th birth anniversary of Bhutan’s former king Jigme Singye Wangchuck, Modi underlined the importance of connectivity and referred to New Delhi’s decision to link Gelephu and Samtse in Bhutan to India’s rail network.

“Connectivity creates opportunity. And opportunity creates prosperity.

With this goal in mind, a decision has been taken to connect Gelephu and Samtse to India’s extensive rail network,” he said.

“Once completed, this project will provide Bhutanese industries and farmers with easier access to India’s large markets,” he said.

Along with rail and road connectivity, we are also rapidly progressing on border infrastructure, Modi said.

India is also extending full support to Bhutan’s Gelephu Mindfulness City, Modi said, announcing that New Delhi will establish an immigration checkpoint near Gelephu.

“The progress and prosperity of India and Bhutan are closely linked. In this spirit, last year the government of India announced a contribution of Rs 10,000 crore to support Bhutan’s Five-Year Plan,” Modi said.

“These funds are being utilized across all sectors – from roads to agriculture, from finance to healthcare, helping improve the ease of living for the people of Bhutan,” he said.

The prime minister noted that India has taken several measures to ensure a steady supply of essential items to the people of Bhutan and that it is expanding the Unified Payment Interface (UPI) facility in that country.

“India and Bhutan are connected not just by borders but also by cultures. Our relationship is one of values, emotions, peace, and progress,” he said.

The prime minister also lauded former King Jigme Singye and said his concept of “Gross National Happiness” became an important measure of development across the world.

Modi said the former King played a decisive role in establishing democratic systems in Bhutan and establishing peace in the border areas.

“The idea of ‘Gross National Happiness’ that you introduced has today become an important measure of development across the world. You have shown that nation-building is not only about GDP, but also about the well-being of humanity,” he said.

 

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