New Delhi: India and Bhutan signed multiple agreements on day one of Prime Minister Narendra Modi’s visit to Thimphu Tuesday, including a Rs 4,000-crore Line of Credit, several memoranda on energy, health, economy, and cross-border cooperation, and the allocation of a plot in Varanasi for a Bhutanese temple.
The two-day visit comes in the backdrop of a deadly car blast in Delhi that killed at least 12 people. Calling the blast a “conspiracy”, PM Modi said in his address to an event to celebrate the 70th birthday of fourth Bhutanese king Jigme Singye Wangchuck that India’s investigative agencies will get to the bottom of the blast.
“The perpetrators behind it will not be spared, All those responsible will be brought to justice,” he said.
The PM’s visit began with the inauguration of a 1020-megawatt landmark Punatsangchhu-II Hydroelectric Project, funded by India and jointly developed by the two countries under a bilateral agreement.
The Punatsangchhu-II project was fully commissioned earlier this year. Funded by India through a 30 percent grant and 70 percent loan, it is expected to boost Bhutan’s power generation capacity by 40 percent and significantly strengthen regional energy security.
India also announced a ₹4,000-crore Line of Credit, Bhutan’s first, aimed at expanding investment in the energy sector, and confirmed plans to resume construction on the main dam of the long-delayed Punatsangchhu-I Hydroelectric Project.
Among the other outcomes, India granted land in Varanasi for a Bhutanese temple and a guesthouse, and agreed to open a new immigration check post at Hatisar, near Bhutan’s southern town of Gelephu which is a part of an emerging cross-border economic zone proposed by Bhutan’s king.
Three memoranda of understanding were also signed including one on renewable energy cooperation, covering solar, wind, biomass, energy storage, and green hydrogen.
Had a very good meeting with His Majesty Jigme Khesar Namgyel Wangchuck, the King of Bhutan. We covered the full range of India-Bhutan relations. We discussed cooperation in sectors like energy, capacity building, connectivity, technology, defence and security. India is proud to… pic.twitter.com/8OEX7wQnhI
— Narendra Modi (@narendramodi) November 11, 2025
Separately, a health and medicine MoU to deepen collaboration on public health, digital medicine, and traditional healing systems was undertaken along with an institutional partnership between Bhutan’s PEMA Secretariat (the nodal agency For mental health in Bhutan) and India’s NIMHANS (National Institute of Mental Health and Neurosciences, Bengaluru) to strengthen mental health capacity and training.
Bhutan remains a cornerstone of India’s Neighbourhood First policy, and continues to be the largest recipient of Indian foreign assistance, receiving ₹2,150 crore in New Delhi’s 2025 international budget. The aid covers hydropower, connectivity, and skill development initiatives.
Ahead of PM Modi’s arrival, Prime Minister Tshering Tobgay announced that the Global Peace Prayer Festival, a royal initiative led by King Jigme Khesar Namgyel Wangchuck, was being supported by India. As a mark of cultural diplomacy, India has also sent a sacred relic of Lord Buddha to Bhutan for public veneration during the festival.
(Edited by Ajeet Tiwari)
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