India offers Bhutan Rs 4,000 crore line of credit for hydel units

NEW DELHI: PM Narendra Modi and Bhutanese king Jigme Khesar Namgyel Wangchuck jointly inaugurated the 1020MW Punatsangchuu-II hydroelectric project, calling it a milestone in the vibrant and growing mutually beneficial energy partnership between India and Bhutan which has brought significant benefits to the lives of ordinary people in both countries.

As PM Modi called on the king during his two-day visit to Bhutan, India announced a concessional line of credit of Rs 4,000 crore for Bhutan to fund energy projects. To promote connectivity, PMModi also said that Gelephu and Samtse in Bhutan will be connected to India's extensive rail network.


"Once completed, this project will provide Bhutanese industries and farmers with easier access to India's large markets," the Prime Minister said, adding that connectivity creates opportunity and opportunity creates prosperity.

The two countries also signed three MoUs in the fields of renewable energy, mental health services, and healthcare to further strengthen bilateral cooperation. The king also conveyed condolences on the loss of lives in the Delhi "tragedy" in the meeting with PM Modi.

"Along with rail and road connectivity, we are rapidly progressing on border infrastructure," said PM Modi, while endorsing the king's vision of Gelephu Mindfulness City. The PM announced that India would establish an immigration checkpoint near Gelephu to further facilitate viMODIsitors and investors visiting the place.

On energy cooperation, PM Modi said Bhutan currently produces 100% of its electricity from renewable energy. "Taking this progress forward, another major step is being taken today. A new hydroelectric project of over 1,000 MW is being launched which will increase Bhutan's hydropower capacity by nearly 40%. In addition, work is also being resumed on another hydroelectric project that has been stalled for a long time," said the PM, adding the progress and prosperity of India and Bhutan are closely linked.

"In this spirit, last year Govt of India announced a contribution of Rs 10,000 crore to support Bhutan's Five-Year Plan. These funds are being utilized across all sectors - from roads to agriculture, from finance to healthcare, helping improve the ease of living for the people of Bhutan," he said.


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