New Hydropower Project, Rs 4,000 Crore Credit Line: Key Takeaways From PM Modi's Bhutan Visit

Last Updated:November 11, 2025, 23:55 IST

Prime Minister Narendra Modi said progress and prosperity of India and Bhutan is closely linked and that there will be greater focus on boosting connectivity

PM Narendra Modi and Bhutan King Jigme Khesar Namgyel Wangchuck unveil a plaque marking the inauguration of the Mangdechhu-II Hydropower Plant, a Bhutan-India Friendship Project, in Bhutan's Thimphu on November 11, 2025. (Image: @MEAIndia/X/PTI)

From establishing a Rs 4,000 crore concessional credit line funding energy projects to inaugurating a 1,020-MW hydropower project built with Indian assistance, Prime Minister Narendra Modi on Tuesday said progress and prosperity of India and Bhutan is closely linked and that there will be greater focus on boosting connectivity.

“Energy cooperation remains a key pillar of the India-Bhutan partnership. Today, we inaugurated the Punatsangchhu-II Hydropower Project. This is an enduring symbol of friendship between our countries," Modi said on social media.

Here are the key takeaways from PM Narendra Modi’s visit to Bhutan:

• Modi and King Jigme Khesar Namgyel Wangchuck inaugurated the Punatsanchchhu-II project following their wide-ranging talks. Electricity generated from the project will be supplied to both countries.
• The Indian side also announced a concessional credit line of Rs 4,000 crore to fund energy projects in Bhutan.
• The two leaders exchanged views to further enhance and strengthen bilateral ties and held discussions on regional and global issues of mutual interest.
• King Jigme Khesar conveyed condolences on the loss of lives in the Delhi blast and his appreciation for India’s support for Bhutan’s socio-economic development.
• The two also witnessed the finalisation of three pacts that will provide for cooperation in renewable energy, healthcare and medicine, and mental health services.
• Earlier, addressing an event to mark the 70th birth anniversary of Bhutan’s former king Jigme Singye Wangchuck, the Prime Minister underlined the importance of connectivity and referred to New Delhi’s decision to link Gelephu and Samtse in Bhutan to India’s rail network.
• The PM said India is also extending full support to Bhutan’s Gelephu Mindfulness City, announcing that New Delhi will establish an immigration checkpoint near Gelephu. “The progress and prosperity of India and Bhutan are closely linked. In this spirit, last year the government of India announced a contribution of Rs 10,000 crore to support Bhutan’s Five-Year Plan," he said. “These funds are being utilised across all sectors – from roads to agriculture, from finance to healthcare, helping improve the ease of living for the people of Bhutan."
• He noted that India has taken several measures to ensure a steady supply of essential items to the people of Bhutan and that it is expanding the Unified Payment Interface (UPI) facility in that country.
• Modi further lauded former King Jigme Singye and said his concept of “Gross National Happiness" became an important measure of development across the world. He said the former King played a decisive role in establishing democratic systems in Bhutan and establishing peace in the border areas. “The idea of ‘Gross National Happiness’ that you introduced has today become an important measure of development across the world. You have shown that nation-building is not only about GDP, but also about the well-being of humanity," he added.

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