SDG 7: Affordable and Clean Energy | SDG 3: Good Health and Well-being | SDG 17: Partnerships for the Goals
Institutions: Ministry of New and Renewable Energy | Ministry of External Affairs
The Prime Minister’s visit to Bhutan has resulted in a series of inaugurations, announcements, and Memoranda of Understanding (MoUs) that significantly deepen the bilateral partnership across energy, connectivity, health, and cultural spheres. The outcomes reinforce the long-standing special ties of friendship, mutual trust, and cooperation between the two nations.
I. Key Energy and Finance Outcomes:
Hydroelectric Project Inauguration: The 1020 MW Punatsangchhu-II Hydroelectric Project}$, constructed under a bilateral agreement, was jointly inaugurated, marking a major milestone in energy cooperation.
Hydroelectric Project Resumption: An understanding was reached on the resumption of work on the main dam structure of the 1200 MW Punatsangchhu-I Hydroelectric Project}$.
Financial Support: India announced a ₹4000 crore Line of Credit (LoC) to Bhutan, aimed at supporting the nation’s development.
II. Connectivity, Health, and Cultural Cooperation:
Renewable Energy MoU: An MoU was signed to institutionalize bilateral engagement in Renewable Energy, focusing on areas such as Solar energy, Wind energy, Biomass, Energy Storage, and Green Hydrogen.
Health and Medicine MoU: An MoU institutionalized health cooperation in areas including drugs, diagnostics, maternal health, traditional medicine, and digital health interventions (telemedicine).
Mental Health Linkage: An MoU was signed between the PEMA Secretariat, Bhutan, and the National Institute of Mental Health and Neuro Sciences (NIMHANS), India, to strengthen collaboration for capacity building of mental health professionals and research.
Connectivity and Culture: India granted land in Varanasi for building a Bhutanese Temple/Monastery and Guest House, fostering cultural ties. A decision was also made to establish an Immigration Check Post in Hatisar across Gelephu, enhancing cross-border access.
This visit significantly reinforced India’s Neighbourhood First Policy by deepening long-term, mutually beneficial cooperation. The continued focus on the hydropower sector and the new commitments to Green Hydrogen and Solar energy directly support Bhutan’s status as a carbon-negative country and strengthen regional energy security. The substantial Line of Credit and the push for new Immigration Check Posts (Gelephu) underscore India’s commitment to improving connectivity and facilitating Bhutan’s integration into India’s vast market.
What is a Line of Credit (LoC)?→ A Line of Credit is a pre-approved borrowing facility extended by a bank or government (India) to a borrower (Bhutan), allowing the borrower to draw funds up to a maximum limit over a specified period. It provides flexible, concessional, and timely financial support for development projects.
Relevant Question for Policy Stakeholders: What mechanisms will India and Bhutan establish to pool technical expertise and finance for the development of Green Hydrogen infrastructure, leveraging the new MoU on Renewable Energy?
Follow the full news here: List of Outcomes: Visit of Prime Minister to Bhutan