India, Bhutan welcome INR 40 billion line of credit for energy projects in Bhutan

NEW DELHI: India and Bhutan have welcomed a concessional Line of Credit of INR 40 billion for energy projects in Bhutan.

The agreement was signed during External Affairs Minister S Jaishankar’s official visit to the country from September 16 to 18, at the invitation of Bhutanese Foreign Affairs and External Trade Minister DN Dhungyel. The two ministers reviewed bilateral cooperation and regional and international matters of mutual interest and expressed satisfaction with progress in the India–Bhutan energy partnership.

They noted recent developments in energy cooperation, including the inauguration of the 1,020 MW Punatsangchhu‑II Hydroelectric Project and the signing of its tariff protocol, and the resumption of dam construction on the 1,200 MW Punatsangchhu-I Hydroelectric Project. The ministers welcomed active engagement by Indian companies in Bhutan’s hydropower sector.

During the visit the ministers jointly inaugurated or launched several development projects, including the 65‑bed Gyaltsuen Jetsun Pema Mother and Child Hospital in Mongar, the Jaganathan Bridge on the Samdrup Jongkhar-Trashigang Highway, and the 500 kW Lunana Hydropower Project. India handed over 54 electric vehicles to the Royal Government of Bhutan and transferred 43 Jersey cows to the National Cattle Breeding Centre in Bumthang.

Jaishankar reaffirmed India’s support for Bhutan’s development priorities, and Bhutan welcomed India’s assistance for programmes under its 13th Five Year Plan (2024–29). The two sides discussed the Gelephu Mindfulness City, trade and transit, cross‑border connectivity, digital payments and space cooperation.

India confirmed its commitment to establish an Immigration Check Post at Hatisar in Assam to facilitate movement of investors and visitors to Gelephu. The ministers noted progress on the Gelephu–Kokrajhar and Samtse–Banarhat cross‑border rail links. They also welcomed the operationalisation of a UPI‑based facility enabling Bhutanese nationals to make digital payments in India using Bhutanese mobile applications.

Cooperation in education advanced, with the number of Bhutanese students eligible under the Indian Council for Cultural Relations scholarship increased from 30 to 60, and seats under the Nalanda University Scholarship Scheme raised from 30 to 55.

India thanked Bhutan for its support for India’s candidature for a non‑permanent seat on the United Nations Security Council for the 2028–29 term, while India welcomed Bhutan’s ratification of the Framework Agreement of the International Big Cat Alliance.

Jaishankar invited Minister DN Dhungyel to visit India at his earliest convenience.

By RSS/ANI