PM Modi Backs Bhutan’s Development Agenda; Announces Key Connectivity & Energy Initiatives

India has reaffirmed its unwavering support for Bhutan’s 13th Five-Year Plan, including the Economic Stimulus Programme, while pledging to assist the Himalayan Kingdom in achieving its developmental priorities and promoting sustainable growth across multiple sectors.

The Bhutanese leadership expressed deep appreciation for India’s continued assistance in implementing key projects under the 13th Five-Year Plan.

Prime Minister Modi reiterated India’s full support for His Majesty’s vision for the Gelephu Mindfulness City, a transformative project aimed at integrating economic progress with environmental and spiritual mindfulness.

During the visit, PM Modi announced the establishment of an Immigration Check Post at Hatisar in Assam, which will facilitate the smoother movement of investors and visitors to Gelephu.

His Majesty the King of Bhutan, Jigme Khesar Namgyel Wangchuck, welcomed this move and acknowledged India’s support for the ongoing construction of Gyalsung academies, aimed at empowering Bhutanese youth through skill development and national service.

Energy and Infrastructure Cooperation

The two leaders welcomed the resumption of work on the main dam structure of the 1,200 MW Punatsangchhu-I hydroelectric project, a major milestone in India-Bhutan energy cooperation.

Once completed, it will stand as the largest hydroelectric project jointly developed by both governments, further strengthening Bhutan’s position as a regional leader in renewable energy.

India also announced a concessional Line of Credit worth ₹40 billion to support energy projects in Bhutan, reinforcing its role as a key development partner.

Bhutan appreciated the active participation of Indian companies in the country’s hydropower sector, which continues to serve as a cornerstone of bilateral cooperation.

Both nations emphasised the importance of improving cross-border connectivity and enhancing border infrastructure.

The two sides welcomed the signing of a Memorandum of Understanding (MoU) on cross-border rail links between Gelephu–Kokrajhar and Samtse–Banarhat, with a Project Steering Committee established to oversee implementation.

The Bhutanese side also appreciated India’s efforts to ensure the uninterrupted supply of essential commodities and fertilisers, with the first consignment already delivered under a new institutional arrangement.

Expanding Cooperation in Health and Renewable Energy

Several MoUs were signed during the visit to further deepen cooperation across key sectors. These include:

• An MoU on Renewable Energy between India’s Ministry of New and Renewable Energy and Bhutan’s Ministry of Energy and Natural Resources.
• An MoU on Health and Medicine between the Ministries of Health of both nations.
• An MoU between Bhutan’s PEMA Secretariat and India’s National Institute of Mental Health and Neurosciences (NIMHANS) to strengthen institutional linkages in mental health and wellbeing.

Prime Minister Modi’s November 11–12 visit reaffirmed the enduring partnership between India and Bhutan, built on mutual trust, respect, and shared values.

The outcomes of this visit are expected to bolster Bhutan’s sustainable development journey, strengthen connectivity, and advance regional cooperation rooted in friendship and goodwill.

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