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India, Bhutan Welcome ₹4,000 Crore Credit for Energy Projects
India and Bhutan agreed to support energy projects in Bhutan with a ₹4,000 crore concessional loan arrangement.
Indian minister S Jaishankar visited Bhutan from September 16 to 18.
He met Bhutanese minister DN Dhungyel to discuss cooperation between the two countries.
They talked about large hydropower projects and other development work.
They also opened or launched a hospital, a bridge and a small hydropower project.
India handed Bhutan 54 electric vehicles and 43 Jersey cows.
The countries discussed better roads, railways, trade and digital payments.
India also said it would support Bhutan’s development goals and scholarship opportunities.
Bhutan supported India’s bid for a United Nations Security Council seat for 2028-2029.
India and Bhutan welcomed a ₹4,000 crore concessional Line of Credit for energy projects in Bhutan.
External Affairs Minister S Jaishankar visited Bhutan from September 16 to 18 at the invitation of Foreign Affairs and External Trade Minister DN Dhungyel.
The countries reviewed bilateral cooperation and regional issues, highlighting progress on the Punatsangchhu-II and Punatsangchhu-I hydropower projects.
The ministers launched or inaugurated projects including a mother-and-child hospital, a highway bridge and the 500 kW Lunana Hydropower Project.
India and Bhutan discussed connectivity, trade, digital payments, education, space cooperation and the Gelephu Mindfulness City.
- Who
- India, Bhutan, External Affairs Minister S Jaishankar and Bhutanese Foreign Affairs and External Trade Minister DN Dhungyel.
- What
- The countries welcomed a ₹4,000 crore concessional Line of Credit for energy projects and reviewed bilateral cooperation.
- Where
- Bhutan, including projects in Mongar, Samdrup Jongkhar, Trashigang and Lunana.
- When
- September 16 to 18, 2026.
- Why
- To advance energy cooperation, development projects, connectivity, trade, education, digital payments and other shared priorities.
Key facts
- Line of Credit
- ₹4,000 crore concessional financing for energy projects in Bhutan
- Visit dates
- September 16-18, 2026
- Hydropower projects
- 1020 MW Punatsangchhu-II and 1200 MW Punatsangchhu-I
- Development projects
- 65-bedded Gyaltsuen Jetsun Pema Mother and Child Hospital, Jaganathan Bridge and 500 kW Lunana Hydropower Project
- Electric vehicles
- 54 vehicles handed over to Bhutan’s Royal Government
- Cattle transfer
- 43 Jersey cows transferred to the National Cattle Breeding Centre in Bumthang
- Scholarships
- Bhutanese eligibility under the Indian Council for Cultural Relations scholarship will double from 30 to 60, while Nalanda University scholarships will increase from 30 to 55
Sources
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