Prime Minister’s Visit to Bhutan: Key Outcomes and Agreements Announced

In November 2025, the Prime Minister of India visited Bhutan, marking a significant milestone in India-Bhutan relations. The visit included key inaugurations, major announcements, and signing of multiple Memoranda of Understanding (MoUs) aimed at strengthening cooperation in energy, healthcare, culture, and border management. This visit reflects the strong strategic and developmental partnership between the two nations.

1. Inauguration of Punatsangchhu-II Hydroelectric Project

The 1020 MW Punatsangchhu-II Hydroelectric Project was inaugurated during the visit. This hydroelectric initiative, developed under a bilateral agreement between India and Bhutan, aims to,

• Boost Bhutan’s electricity generation capacity.
• Strengthen energy cooperation between India and Bhutan.
• Provide a foundation for sustainable infrastructure development in the region.

2. Major Announcements During the Visit

The visit included several significant announcements that will further enhance bilateral cooperation,

• Resumption of Punatsangchhu-I Hydro Project: Work will resume on the 1200 MW main dam structure.
• Land Grant in Varanasi: Land allocated for a Bhutanese Temple/Monastery and Guest House.
• Immigration Check Post in Hatisar: New post across Gelephu to facilitate smooth cross-border movement.
• INR 4000 crore Line of Credit (LoC): Financial support for Bhutan’s infrastructure and development projects.

3. Memoranda of Understanding (MoUs) Signed

Several MoUs were signed to strengthen bilateral collaboration in key sectors,

4. Significance of the Visit

The Prime Minister’s visit highlights India’s holistic approach towards Bhutan, focusing on,

• Energy Security: Expanding hydroelectric and renewable energy cooperation.
• Healthcare Development: Enhancing collaboration in public health, mental health, and digital health interventions.
• Cultural & Religious Ties: Supporting Bhutanese cultural presence in India.
• Border Management: Establishment of a new Immigration Check Post for smoother bilateral movement.
• Financial Support: Strengthening Bhutan’s infrastructure through a major Line of Credit.

5. Key Takeaways (Bullet Points)

• Projects Inaugurated: 1020 MW Punatsangchhu-II Hydro Project.
• Financial Assistance: INR 4000 crore Line of Credit.
• MoUs Signed: Renewable Energy, Health & Medicine, PEMA–NIMHANS collaboration.
• Cultural & Border Initiatives: Land for temple/monastery in Varanasi, Immigration Check Post at Hatisar.
• Strategic Impact: Reinforces India-Bhutan partnership in energy, health, culture, and infrastructure.