India and Bhutan strengthen bilateral ties through energy and digital agreements

During a three-day official visit to Bhutan from September 16 to 18, Indian External Affairs Minister S. Jaishankar and Bhutanese officials strengthened bilateral ties through several key agreements and project inaugurations.

In the energy sector, India and Bhutan signed a concessional Line of Credit worth INR 4,000 crore to support hydropower projects. The leaders also reviewed progress on the 1020 MW Punatsangchhu-II Hydroelectric Project and the resumption of construction on the 1200 MW Punatsangchhu-I project. Additionally, the foundation stone was laid for the 500 kW Lunana Hydropower Project in Gasa.

Digital and economic cooperation was advanced by the launch of Phase-II of international UPI, enabling two-way digital payment connectivity for Bhutanese citizens visiting India. India also handed over 54 electric vehicles to support Bhutan’s e-mobility goals and provided 43 pureline Jersey cows to bolster the local dairy sector.

Infrastructure and social development projects were also highlighted, including the inauguration of the 65-bed Gyaltsuen Jetsun Pema Mother and Child Hospital in Mongar and the opening of the 80-metre Jaganathan Bridge in Samdrup Jongkhar. The two nations also discussed continued collaboration on the Gelephu Mindfulness City (GMC) vision.