India reaffirms support to Bhutan's economic development
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New Delhi: India has reaffirmed unwavering support to Bhutan's 13th Five-Year Plan, including the Economic Stimulus Programme, along with actively assisting the Himalayan Kingdom in achieving its key development priorities and advancing sustainable growth across sectors, an official statement said on Wednesday.
As Prime Minister Narendra Modi concluded his two-day state visit to Bhutan, the Bhutanese side appreciated India's assistance for its 13th Five-Year Plan period for various projects under implementation across Bhutan and their contribution to the country's development.
PM Modi also conveyed the full support of the Government of India for the realisation of "His Majesty's vision for the Gelephu Mindfulness City". "PM Modi announced the decision to establish an Immigration Check Post at Hatisar, Assam, to facilitate easy movement of investors and visitors to Gelephu. His Majesty appreciated the Government of India's support for the construction of Gyalsung academies," according to a statement from the Prime Minister's Office (PMO).
The leaders welcomed the understanding reached regarding the resumption of work on the main dam structure of the 1200 MW Punatsangchhu-I hydroelectric project and agreed to work for expeditious completion of the project.
Once completed, Punatsangchhu-I will be the largest hydroelectric project jointly developed by the two Governments.
The leaders also welcomed the active engagement of Indian companies in the hydropower projects in Bhutan. The Bhutanese side expressed appreciation for the announcement by the Government of India of a concessional Line of Credit of Rs 40 billion to fund energy projects in Bhutan. The two sides underlined the importance of improving cross-border connectivity and enhancement of border infrastructure, including the setting up of Integrated Check Posts. Both sides also welcomed the signing of the Memorandum of Understanding (MoU) on the establishment of cross-border rail links (Gelephu-Kokrajhar and Samtse-Banarhat) in September 2025 and the subsequent establishment of the Project Steering Committee for the project's implementation.
