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Modi Concludes Bhutan Visit With Hydropower Launch, Credit Line and New Border Post

The visit delivered financing, project restarts, new border access to advance Bhutan’s energy and Gelephu development goals.

Overview

  • In Thimphu, Modi and King Jigme Khesar jointly inaugurated the 1,020 MW Punatsangchhu‑II hydropower project, with electricity to be supplied to Bhutan and India.
  • India announced a concessional ₹4,000 crore line of credit to fund energy projects in Bhutan as part of a broader push in the power sector.
  • Both countries agreed to resume work on the main dam of the 1,200 MW Punatsangchhu‑I project and to expedite its completion.
  • An immigration checkpost will be established at Hatisar in Assam to facilitate investor and visitor access to Bhutan’s planned Gelephu Mindfulness City, alongside earlier connectivity steps at Darranga, Jogigopha and new rail MoUs.
  • Three MoUs were signed on renewable energy, health and PEMA–NIMHANS institutional linkages, while India reiterated support for Bhutan’s 13th Five‑Year Plan valued at ₹10,000 crore; Modi also joined the Kalachakra ceremony and met the Fourth King.