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New energy, rail, and connectivity pacts strengthen India-Bhutan strategic partnership.

India Extends ₹4,000 Crore Credit Line to Bhutan and Inaugurates 1,020 MW Hydropower Project

During Prime Minister Narendra Modi’s two-day visit to Bhutan, India announced a ₹4,000 crore line of credit to support the Himalayan nation’s hydropower projects, reaffirming their strong energy partnership. Modi and King Jigme Khesar Namgyel Wangchuck jointly inaugurated the 1,020 MW Punatsangchhu-II Hydroelectric Project, marking a significant milestone in India-Bhutan renewable energy cooperation. Three MoUs were signed in renewable energy, mental health, and healthcare, further strengthening bilateral collaboration. Modi also announced plans to connect Gelephu and Samtse with India’s rail network, improving trade access for Bhutanese industries and farmers. Supporting the King’s Gelephu Mindfulness City vision, Modi committed to establishing an immigration checkpoint near the area to boost travel and investment. He highlighted that Bhutan already generates 100% of its electricity from renewables and reaffirmed India’s ₹10,000 crore support for Bhutan’s Five-Year Plan, emphasising the shared commitment of the nations to regional progress and prosperity.