Modi Deepens India-Bhutan Ties With Hydropower Push, Peace Festival Tribute and Strategic Pacts

India and Bhutan have restated their time-tested friendship and strategic cooperation during Prime Minister Narendra Modi’s two-day state visit to the Himalayan kingdom from November 11 to 12. 

The visit coincided with the 70th birth anniversary of Bhutan’s Fourth King Jigme Singye Wangchuck and featured high-level engagements, religious observances, and key bilateral milestones.

Modi Deepens India-Bhutan Ties With Hydropower Push, Peace Festival Tribute and Strategic Pacts
Image Via: MEA India
As guest of honour at the national celebration in Thimphu, Prime Minister Modi joined Bhutan’s royal family and citizens in commemorating the legacy of the Fourth Druk Gyalpo. 

Speaking at the Changlimithang Stadium, Modi praised the monarch’s role in guiding Bhutan’s transformation into a democratic constitutional monarchy and his introduction of the globally noted concept of Gross National Happiness. 

He thanked both the Fourth King and current King Jigme Khesar Namgyel Wangchuck for their stewardship of India-Bhutan ties and conveyed warm wishes from the Indian people.

The visit held additional symbolic resonance with the presence of the Sacred Piprahwa Relics of Lord Buddha from India, displayed in Thimphu during Bhutan’s Global Peace Prayer Festival. 

Modi joined both kings at the Kalachakra initiation ceremony presided over by Bhutan’s Chief Abbot, reflecting the shared spiritual heritage that underpins the relationship between the two nations.

Prime Minister Modi and the Bhutanese King jointly inaugurated the 1,020 MW Punatsangchhu-II Hydroelectric Project, a major milestone in the bilateral energy partnership. The project, developed with Indian assistance, will now begin supplying power to India and is seen as part of the broader regional grid integration agenda. 

The leaders also agreed to resume work on the dam structure of the 1,200 MW Punatsangchhu-I, which when completed will become the largest joint hydropower venture between the two countries.

India announced a concessional Line of Credit worth INR 40 billion (approximately $480 million) to support Bhutan’s energy infrastructure, and extended full support for the country’s 13th Five Year Plan, including the Gelephu Mindfulness City vision—Bhutan’s flagship sustainable development initiative. 

Modi also announced an immigration checkpoint in Assam to facilitate easier cross-border access to the project area.

The two sides signed three key Memoranda of Understanding covering renewable energy, healthcare, and mental health cooperation. Progress was noted in cross-border infrastructure, with updates on integrated checkposts, inland waterways, and upcoming railway links connecting Bhutan to Indian states. 

They also reviewed progress in digital payments, including Phase II of UPI integration, and ongoing collaboration in fintech, STEM education, and space technology.

The visit came just after a deadly car bomb blast near Delhi’s Red Fort killed several people. Bhutanese leaders expressed condolences and solidarity, offering prayers at the national event. Modi acknowledged the support and emphasized the importance of regional unity in the face of cross-border threats.

The visit reaffirmed Bhutan’s centrality in India’s “Neighbourhood First” policy and highlighted the increasingly multifaceted nature of bilateral ties, spanning energy, trade, digital innovation, and shared civilizational heritage. 

Both sides pledged to maintain the tradition of high-level engagement and to continue building on the foundation of mutual respect and trust.

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