India and Bhutan have welcomed the signing of a concessional Line of Credit worth Rs 4,000 crore for energy projects in Bhutan. The agreement was signed during External Affairs Minister S Jaishankar’s official visit to Bhutan from September 16 to 18. EAM Jaishankar visited Bhutan at the invitation of Bhutanese Foreign Affairs and External Trade Minister DN Dhungyel.

According to a joint press release issued by the Ministry of External Affairs (MEA), the two ministers reviewed all areas of bilateral cooperation. They also discussed regional and international issues of mutual interest. Both sides expressed satisfaction with the progress of the India-Bhutan energy partnership.

The ministers reviewed recent developments in the energy sector. These included the inauguration of the 1,020 MW Punatsangchhu-II Hydroelectric Project and the signing of its Tariff Protocol. They also noted the resumption of dam construction at the 1,200 MW Punatsangchhu-I Hydroelectric Project.

India and Bhutan welcomed the growing participation of Indian companies in Bhutan’s hydropower projects. Both sides said this engagement was adding momentum to their existing energy cooperation.

Jaishankar and Dhungyel also jointly inaugurated and launched several development projects. These included the 65-bed Gyaltsuen Jetsun Pema Mother and Child Hospital in Mongar, the Jaganathan Bridge on the Samdrup Jongkhar-Trashigang Highway and the 500 kW Lunana Hydropower Project.

The two sides also welcomed the handover of 54 electric vehicles to the Royal Government of Bhutan. India also transferred 43 Jersey cows to the National Cattle Breeding Centre in Bumthang.

Jaishankar reaffirmed India’s support for Bhutan’s development goals and priorities. Bhutan, in turn, appreciated India’s support for programmes under its 13th Five Year Plan for 2024-29.

The two ministers discussed several other areas of cooperation. These included the Gelephu Mindfulness City, trade and transit, cross-border connectivity, digital payments and space cooperation.

India reaffirmed its commitment to establish an Immigration Check Post at Hatisar in Assam. The facility will help ease the movement of investors and visitors to Gelephu. Both sides also noted progress on the Gelephu-Kokrajhar and Samtse-Banarhat cross-border rail links.

The ministers welcomed the operationalisation of a UPI-based facility that allows Bhutanese nationals to make digital payments in India through Bhutanese mobile applications. They also welcomed cooperation in education. India will double the number of Bhutanese students eligible for Indian Council for Cultural Relations scholarships from 30 to 60. Seats under the Nalanda University Scholarship Scheme will also rise from 30 to 55.

India thanked Bhutan for supporting its candidature for a non-permanent seat on the United Nations Security Council for the 2028-29 term. India also welcomed Bhutan’s ratification of the Framework Agreement of the International Big Cat Alliance.

Jaishankar invited Dhungyel to visit India at his earliest convenience, the MEA said.