Thimphu: Prime Minister Narendra Modi and Bhutan King Jigme Khesar Namgyel Wangchuck jointly inaugurated the 1,020 MW Punatsangchhu-II Hydroelectric Project that will export electricity to India.
This marks another milestone in the two countries’ long-standing energy partnership, it was said in a joint statement. Both leaders also agreed to resume work on the main dam of the 1,200 MW Punatsangchhu-I project and to expedite its completion.
India has announced a concessional line of credit worth Rs 40 billion for Bhutan’s energy projects. Both sides expressed satisfaction with the progress of the Joint Vision on Energy Partnership signed in March 2024.
India and Bhutan also signed three MoUs covering renewable energy, health and medicine, and institutional linkages between Bhutan’s PEMA Secretariat and India’s National Institute of Mental Health and Neurosciences.
PM Modi and King Wangchuck said on Wednesday that a an immigration checkpost between the two countries will be established at Hatisar in Assam.
According to the joint statement, the two nations said that the checkpost will facilitate the movement of investors and visitors to Bhutan’s upcoming Gelephu Mindfulness City.
PM Modi is presently on a two-day visit to Bhutan on the invitation of King Wangchuck. He is likely to return to India on Wednesday evening.
The two countries agreed to strengthen border and transport infrastructure during the visit. Both sides welcomed the operationalisation of the immigration checkpost at Darranga in 2024 and the opening of the Inland Waterways Terminal and Multimodal Logistics Park in Jogigophain Assam in March 2025.
They further said the signing of an MoU in September 2025 to establish cross-border rail links between Gelephu-Kokrajhar and Samtse-Banarhat and the formation of a project steering committee to oversee implementation boosted the relations between the two nations.
PM Modi reaffirmed India’s support for Bhutan’s 13th Five Year Plan and its Economic Stimulus Programme. The visit also saw both sides review cooperation in fintech, space, and STEM education.
The Bhutanese side thanked India for ensuring the uninterrupted supply of essential goods and fertilisers and for the arrival of the first consignment under a new arrangement.
