Prime Minister Narendra Modi on Tuesday inaugurated the 1,020 MW Punatsangchhu-II Hydroelectric Project in Thimphu, calling it a symbol of the deepening cooperation between India and Bhutan.
The project, built under a bilateral agreement, marks a major step in the two nations’ shared energy ambitions.
During the visit, both sides also agreed to resume work on the 1,200 MW Punatsangchhu-I Hydroelectric Project, signalling renewed momentum in Bhutan’s hydropower development with Indian support.
In a significant move to bolster Bhutan’s economic progress, India announced a ₹4,000-crore Line of Credit (LoC).
The concessional funding aims to accelerate infrastructure and energy projects across the Himalayan kingdom. It further strengthens India’s role as a key development partner.
The announcement reflects India’s continuing commitment to Bhutan’s socio-economic growth and its strategic partnership in South Asia.
PM Modi announced the allocation of land in Varanasi for the construction of a Bhutanese Temple and Guest House. The move reinforces the cultural and spiritual ties between India and Bhutan.
India expressed its respect for Bhutan’s Buddhist heritage and the shared civilisational connections between the two nations through the gesture.
In addition, both countries have agreed to establish an Immigration Check Post at Hatisar. This move will enhance connectivity and facilitate people-to-people movement across the Gelephu border.
India and Bhutan signed a series of Memoranda of Understanding (MoUs) to strengthen collaboration in renewable energy, health, and mental well-being.
Renewable Energy MoU: Signed between Bhutan’s Energy and Natural Resources Minister Lyonpo Gem Tshering and India’s Renewable Energy Minister Pralhad Venkatesh Joshi, it will foster cooperation in solar, wind, biomass, and green hydrogen projects.
Health Cooperation MoU: Focuses on advancing collaboration in drug manufacturing, digital health, telemedicine, and medical research.
Mental Health Partnership: Inked between Bhutan’s PEMA Secretariat and India’s NIMHANS, it aims to build institutional linkages and develop in-country mental health training and research programmes.
PM Modi’s visit reaffirmed the enduring India-Bhutan partnership, built on trust, mutual respect, and shared progress.
The new initiatives, spanning infrastructure, culture, and healthcare, reflect the evolving dynamics of an age-old friendship adapting to modern aspirations.
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