India Prime Minister Narendra Modi’s two-day state visit to Bhutan from 11–12 November further strengthened India–Bhutan relations and  highlighted new energy partnerships and infrastructure initiatives, as well as development financing for Bhutan. The visit coincided with Bhutan’s national celebrations for the 70th birth anniversary of the Fourth Druk Gyalpo, which Prime Minister Modi attended as the the guest of honor.

During the visit, His Royal Highness King Jigme Khesar Namgyel Wangchuck and Prime Minister Modi jointly inaugurated the India-financed 1,020 megawatt Punatsangchhu-II Hydroelectric Project and welcomed the understanding to resume and expedite completion of the main dam of the 1,200 MW Punatsangchhu-I. Once completed, this will be the largest jointly developed hydropower project by the two governments. 

India also reaffirmed strong support for Bhutan’s 13th Five-Year Plan, including its Economic Stimulus Program, backed by a new concessional Line of Credit and expanding cooperation in infrastructure, digital connectivity, and other emerging sectors. 

Key outcomes of Prime Minister Modi’s visit to Bhutan:

• Inauguration of the 1,020 MW Punatsangchhu-II project and start of electricity exports to India.
• Agreement to resume and expedite work on the main dam of the 1,200 MW Punatsangchhu-I project.
• Reaffirmation of the Government of India’s support for Bhutan’s 13th Five-Year Plan, including its Economic Stimulus Programme.
• Announcement of a concessional Line of Credit of ₹40 billion from India for Bhutan energy projects.
• Progress on cross-border connectivity, including Integrated Check Posts, an inland waterways terminal, multimodal logistics park, and new rail links (Gelephu–Kokrajhar, Samtse–Banarhat).
• Advancement of digital and tech cooperation.
• Signing of three MoUs on renewable energy, health and medicine, and institutional linkages for mental health.

Related links

India, Bhutan Strengthen Ties With New Energy And Infra Projects  

Embassy of India, Thimphu post