PM Modi, Bhutan King inaugurate Punatsangchhu-II Hydropower Project

• Prime Minister Narendra Modi and Jigme Khesar Namgyel Wangchuck, the King of Bhutan, jointly inaugurated the 1,020 MW Punatsangchhu-II Hydroelectric Project on November 11.

• Punatsangchhu-II project was implemented under inter-governmental mode by the government of India and the Royal Government of Bhutan. 

• The project is located at the right bank of Punatsangchhu river in Wangdue Phodrang dzongkhag.

• Both leaders welcomed the commencement of export of electricity from Punatsangchhu-II to India.

• They welcomed the active engagements of Indian companies in the hydropower projects in Bhutan. 

• The Indian side announced a concessional credit line of Rs 4,000 crore to fund energy projects in Bhutan. 

• The two leaders exchanged views to further enhance and strengthen bilateral ties and held discussions on regional and global issues of mutual interest. 

• PM Modi reaffirmed India’s unwavering support to Bhutan’s 13th Five Year Plan, including the Economic Stimulus Programme, emphasising India’s commitment to actively assisting Bhutan in achieving its key development priorities and advancing sustainable growth across sectors.

• PM Modi joined the people of Bhutan in marking the 70th birth anniversary of Jigme Singye Wangchuck, the Fourth Druk Gyalpo, in Changlimithang as the guest of honour.

• He also took part in the ongoing Global Peace Prayer Festival in Thimphu.

• He conveyed full support of the government of India for the realisation of the King’s vision for the Gelephu Mindfulness City. 

Steps to improve cross-border connectivity

• PM Modi announced the decision to establish an Immigration Check Post at Hatisar, Assam, to facilitate easy movement of investors and visitors to Gelephu.

• The two sides underlined the importance of improving cross border connectivity and enhancement of border infrastructure, including setting up of Integrated Check Posts. 

• They welcomed the operationalisation of Immigration Check Post at Darranga in November 2024 and the Inland Waterways Terminal and Multimodal Logistics Park in Jogigopha in March 2025. 

• 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 implementation of the project.

The following MoUs were signed during the visit:

i) MoU on Cooperation in the field of renewable energy.

ii) MoU on Cooperation in the field of health and medicine.

iii) MoU between The PEMA Secretariat and the National Institute of Mental Health and National Institute of Mental Health and Neuro Sciences (NIMHANS) India on building institutional linkage.