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Modi Inaugurates 1,020-MW Bhutan Hydro Project, Announces Credit Line and Border Easing

The visit deepens an energy-led partnership through fresh financing, immigration facilitation, plus progress on stalled dam work.

Overview

  • Prime Minister Narendra Modi and King Jigme Khesar Namgyel Wangchuck jointly inaugurated the 1,020 MW Punatsangchhu-II project, lifting Bhutan’s power capacity by about 40%.
  • Both countries agreed to resume work on the main dam of the 1,200 MW Punatsangchhu-I hydropower project after years of delays.
  • India announced a Rs 4,000-crore line of credit, approved an immigration check post at Hatisar across Gelephu, and granted land in Varanasi for a Bhutanese temple and guesthouse.
  • Modi flagged progress toward the first IndiaBhutan rail links—KokrajharGelephu and BanarhatSamtse—to expand market access and connectivity.
  • Talks with Bhutan’s leadership spanned energy, connectivity, technology, defence and security, as Modi also joined the Global Peace Prayer Festival and the fourth king’s 70th birthday events.