New Delhi: In a landmark moment for India-Bhutan relations, Prime Minister Narendra Modi and the King of Bhutan, Jigme Khesar Namgyel Wangchuck, jointly inaugurated the 1020 MW Punatsangchhu-II hydroelectric project on Tuesday, as he embarked on a two-day visit to the Himalayan country. The project, constructed under a bilateral agreement between the two countries, marks a major milestone in their long-standing energy cooperation.
The inauguration ceremony, held amid the Global Peace Prayer Festival and the celebrations of the Bhutan King’s 70th birthday, was attended by members of the Bhutanese royal family, senior officials and spiritual leaders from across the world.
In his address, PM Modi described the day as “an important occasion for Bhutan, for the royal family, and for all who believe in world peace”.
Energy & Development Cooperation
Highlighting Bhutan’s achievements in renewable energy, PM Modi noted that the Himalayan nation produces “100% of its electricity from renewable sources” and has emerged as “the world’s first carbon-negative country”.
He announced the resumption of work on the main dam structure of the 1200 MW Punatsangchhu-I Hydroelectric Project, which had been stalled for several years, terming it another step in advancing the “India-Bhutan energy partnership”.
Both sides also signed an MoU on cooperation in the field of renewable energy, focusing on collaboration in solar, wind, biomass, energy storage, and green hydrogen.
Strengthening Connectivity & Investment
PM Modi announced that India and Bhutan are moving ahead with plans to connect Gelephu and Samtse to India’s rail network, enhancing trade access for Bhutanese farmers and industries.
In a further boost to cross-border movement, the Government of India has approved the establishment of an immigration check post at Hatisar, across Gelephu.
He also reaffirmed India’s commitment to supporting Bhutan’s development priorities, recalling the earlier ₹10,000 crore assistance for Bhutan’s 13th Five-Year Plan and announcing a new Line of Credit worth ₹4,000 crore to aid infrastructure and economic growth.
Expanding Cultural & Spiritual Bonds
Underscoring the deep cultural and spiritual connections between the two countries, the PM announced that the Indian government will grant land in Varanasi for the construction of a Bhutanese temple/monastery and guest house. The initiative follows the inauguration of the Royal Bhutanese Temple in Rajgir earlier this year.
“Our relationship is not just about borders but about shared values, emotions, peace and progress,” he said.
Health & Education Partnerships
In addition to the renewable energy agreement, two other MoUs were signed:
- MoU on Cooperation in the field of health and medicine, focusing on digital health, traditional medicine and capacity building.
- MoU between the PEMA Secretariat and Nimhans, India’s premier mental health institute, aimed at developing institutional linkages and in-country training for mental health professionals.
Shared Vision for the Future
Praising the visionary leadership of King Wangchuck, PM Modi said that the concept of ‘Gross National Happiness’ introduced by Bhutan had reshaped global ideas of progress and well-being.
He reaffirmed India’s support for King Wangchuck’s ‘Gelephu Mindfulness City’ project, describing it as a model of sustainable and inclusive development.