Prime Minister Narendra Modi and Bhutan’s King Jigme Khesar Namgyel Wangchuck jointly inaugurated the 1,020 MW Punatsangchhu-II Hydroelectric Project, marking a new milestone in the India-Bhutan energy partnership. The project will export electricity to India, reinforcing the two nations’ commitment to sustainable and mutually beneficial cooperation in the field of renewable energy. Both leaders also agreed to resume work on the main dam of the 1,200 MW Punatsangchhu-I project and to expedite its completion, further strengthening bilateral energy collaboration.
India announced a concessional line of credit worth INR 40 billion to support Bhutan’s energy initiatives. The two countries expressed satisfaction over the steady progress of the Joint Vision on Energy Partnership signed in March 2024, which continues to guide their shared goals in hydropower and renewable energy development. This collaboration emphasizes clean energy growth and deepens the strategic and economic ties between the neighboring nations.
During the visit, India and Bhutan signed three key Memorandums of Understanding (MoUs) focused on renewable energy, health and medicine, and institutional cooperation between Bhutan’s PEMA Secretariat and India’s National Institute of Mental Health and Neurosciences (NIMHANS). These agreements aim to promote innovation, strengthen healthcare systems, and expand knowledge exchange between the two countries, contributing to Bhutan’s sustainable development goals.
The leaders also announced the establishment of a new immigration checkpost at Hatisar in Assam to facilitate travel and trade. This initiative will improve connectivity to Bhutan’s upcoming Gelephu Mindfulness City, a visionary project designed to attract investors and visitors while promoting well-being and ecological harmony. The checkpost is expected to significantly boost cross-border movement and regional integration.
Both sides reviewed recent infrastructure achievements, including the operationalization of the Darranga checkpost in 2024 and the inauguration of the Inland Waterways Terminal and Multimodal Logistics Park in Jogighopa, Assam, in March 2025. These projects have enhanced trade efficiency and connectivity, paving the way for stronger economic cooperation between India and Bhutan.
The visit also highlighted the signing of an MoU in September 2025 to develop cross-border rail links between Gelephu-Kokrajhar and Samtse-Banarhat. A project steering committee has been formed to oversee implementation. Prime Minister Modi reaffirmed India’s support for Bhutan’s 13th Five-Year Plan and its Economic Stimulus Programme, underscoring India’s continued commitment to Bhutan’s growth, stability, and prosperity.