How is India Supporting Bhutan's Development with a Rs 4,000 Crore Credit?
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Synopsis
In a significant diplomatic move, Prime Minister Narendra Modi inaugurated a major hydroelectric project and extended a substantial credit line to Bhutan. This partnership not only emphasizes energy collaboration but also cultural ties through a new temple in Varanasi. Discover the implications of this agreement for both nations.
Key Takeaways
- 1,020 MW Punatsangchhu-II Hydroelectric Project inaugurated.
- Rs 4,000 crore line of credit extended to Bhutan.
- Land granted in Varanasi for a Bhutanese Temple.
- New Immigration Check Post established.
- Multiple MoUs signed focusing on renewable energy and health.
Thimphu, Nov 11 (NationPress) Prime Minister Narendra Modi inaugurated the 1,020 MW Punatsangchhu-II Hydroelectric Project on Tuesday, a significant achievement in the energy collaboration between India and Bhutan. This event also included an agreement to resume work on the main dam of the 1200 MW Punatsangchhu-I Hydroelectric Project.
India has provided a Rs 4,000 crore Line of Credit (LoC) to Bhutan to boost economic growth in the Himalayan nation.
Additionally, to enhance cultural relations, PM Modi announced the allocation of land in Varanasi for a Bhutanese Temple and Guest House in this sacred city.
The two nations have also agreed to set up an Immigration Check Post in Hatisar across from Gelephu.
During PM Modi’s visit, several Memoranda of Understanding (MoUs) were signed, including one on Renewable Energy, which was signed by Bhutan's Energy and Natural Resources Minister Lyonpo Gem Tshering and India's New and Renewable Energy Minister Pralhad Venkatesh Joshi. This MoU aims to formalize cooperation in renewable energy sectors such as solar, wind, biomass, energy storage, Green Hydrogen, and capacity building in these fields.
Another MoU focused on Health and Medicine, seeking to enhance bilateral health collaboration in areas like drugs, diagnostics and devices, maternal health, and the prevention and treatment of diseases, including traditional medicine and digital health initiatives.
Furthermore, an MoU was signed between the PEMA Secretariat of Bhutan and the National Institute of Mental Health and Neuro Sciences (NIMHANS) in India to establish institutional linkages. This agreement aims to bolster cooperation in training mental health professionals and developing local mental health courses for service enhancement and research.
Point of View
This collaborative effort between India and Bhutan exemplifies a strong commitment to mutual growth and stability in the region. The focus on renewable energy and health underscores the shared vision for sustainable development, reflecting a proactive approach to international relations.
NationPress
11/11/2025
Frequently Asked Questions
What is the purpose of the Rs 4,000 crore line of credit?
The Rs 4,000 crore line of credit is aimed at enhancing Bhutan's economic development, facilitating infrastructure and energy projects.
What projects were inaugurated during PM Modi's visit?
PM Modi inaugurated the 1,020 MW Punatsangchhu-II Hydroelectric Project and announced the construction of a Bhutanese temple and guest house in Varanasi.
What are the key areas of cooperation highlighted in the MoUs?
The MoUs focus on renewable energy, health and medicine, and mental health, emphasizing collaborative efforts in these critical sectors.
