New Delhi: India and Bhutan welcomed the signing of an agreement on a concessional Line of Credit of INR 4,000 crore for energy projects in Bhutan during External Affairs Minister S Jaishankar’s official visit to the country, according to a joint press release issued by the Ministry of External Affairs (MEA).
As per the official press release issued on September 18, Friday, EAM Jaishankar paid an official visit to Bhutan from September 16 to 18 at the invitation of Bhutanese Foreign Affairs and External Trade Minister DN Dhungyel. During the visit, the two ministers reviewed all aspects of bilateral cooperation as well as regional and international issues of mutual importance and expressed satisfaction with progress in the India-Bhutan energy partnership.
India-Bhutan energy cooperation witness new heights
The two sides recalled recent developments in energy cooperation, including the inauguration of the 1020 MW Punatsangchhu-II Hydroelectric Project and the signing of its Tariff Protocol, as well as the resumption of dam construction of the 1200 MW Punatsangchhu-I Hydroelectric Project. They also welcomed the active engagement of Indian companies in hydropower projects in Bhutan, which the two sides said was adding dynamism to existing energy cooperation.
The two ministers jointly inaugurated or launched several development projects, including the 65-bedded 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 handing over of 54 electric vehicles to the Royal Government of Bhutan and the transfer of 43 Jersey cows from India to the National Cattle Breeding Centre in Bumthang, the MEA said.
Delighted to hand over 54 ‘Made in India’ electric vehicles to PM @tsheringtobgay.
India is supporting Bhutan’s advances towards e-mobility and sustainability transport.
🇮🇳 🇧🇹 pic.twitter.com/RjgtftUzI2
— Dr. S. Jaishankar (@DrSJaishankar) September 17, 2026
Border connectivity, digital payments, education and space cooperation
EAM Jaishankar reaffirmed India’s support for Bhutan’s developmental goals and priorities, while Bhutan appreciated India’s support for programmes under its 13th Five Year Plan (2024-29). The two sides also discussed 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 to facilitate movement of investors and visitors to Gelephu. The two 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 enabling Bhutanese nationals to make digital payments in India using Bhutanese mobile applications.
Joined PM Bhutan Dasho @tsheringtobgay and @FMBhutan D. N. Dhungyel in :
➡️ Launching the phase-II of international UPI @UPI_NPCI for Bhutanese citizens visiting India to make payments. Together with the use of UPI in Bhutan, this completes two-way UPI-based digital payment… pic.twitter.com/2YiLsChxrZ
— Dr. S. Jaishankar (@DrSJaishankar) September 17, 2026
They also welcomed cooperation in education, including doubling the number of Bhutanese students eligible under the Indian Council for Cultural Relations scholarship from 30 to 60 and increasing seats under the Nalanda University Scholarship Scheme from 30 to 55.
India thanked Bhutan for its support for India’s candidature for a non-permanent seat on the United Nations Security Council for the 2028-2029 term, while India welcomed Bhutan’s ratification of the Framework Agreement of the International Big Cat Alliance. EAM Jaishankar also invited the Bhutanese Foreign Affairs and External Trade Minister to visit India at his earliest convenience.
(With Inputs from ANI)
