India and Bhutan Expand Energy Collaboration

India and Bhutan have committed to further expanding their bilateral energy cooperation by signing a loan agreement worth 40 billion Indian rupees for energy projects. Both countries highlighted the inauguration of the 1,020-megawatt Punatsangchu-II hydropower project and the recommencement of dam construction for the 1,200-megawatt Punatsangchu-I project as key achievements.

During India’s External Affairs Minister S. Jaishankar’s visit to Bhutan from September 16 to 18, the two sides engaged in discussions on bilateral cooperation as well as regional and international issues. Bhutan welcomed the active involvement of Indian companies in various hydropower projects across the country. During the visit, several development projects were inaugurated in Mongar, including a 65-bed mother and child hospital, the Jagannathan Bridge on the Samdrup Jongkhar–Trashigang highway, and the 500-kilowatt Lunana hydropower plant.

Jaishankar reiterated India’s commitment to continue supporting Bhutan’s development goals and priorities. The two sides also discussed cooperation in the areas of Gelephu Mindfulness City, trade and transit, cross-border connectivity, digital payments, and space collaboration. India reaffirmed its pledge to facilitate movement in Gelephu by establishing an immigration check post at Hatisar in Assam.

In education, it was decided to increase the number of Bhutanese students under the Indian Council for Cultural Relations scholarships from 30 to 60, and seats under the Nalanda University scholarship from 30 to 55. During the visit, Jaishankar extended an invitation to Bhutan’s Minister of Foreign Affairs and Foreign Trade, D.N. Dhungyal, to visit India.