India, Bhutan Approve 12 Projects Worth ₹332 Crore

India and Bhutan have approved 12 new development projects worth ₹332 crore under Bhutan's 13th Five-Year Plan, while reviewing progress on India's ₹10,000 crore assistance package and expanding cooperation in energy, healthcare, and infrastructure.

The development partnership between India and Bhutan has been reconfirmed through a review of the development cooperation initiatives made under the 13th Five Year Plan (2024-2029) of Bhutan, and the endorsement of 12 new projects under Project Tied Assistance (PTA) which amount to ₹332 crore. This was achieved during the Fifth India-Bhutan Development Cooperation Talks that took place in Thimphu, which were chaired by the Foreign Secretary of India Vikram Misri and Pema Lektup Dorji of Bhutan.

While negotiations took place, the two countries went through how India's ₹10,000 crore development aid package was being carried out in regard to Bhutan's 13th Five-Year Plan. The development aid package is made up of assistance for Project Tied Assistance (PTA), High Impact Community Development Projects (HICDP), Economic Stimulus Program (ESP), and Program Grants. The latest approval brings the number of PTA projects to 82, having incurred a total expenditure of around ₹6,860 crore.

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The approved projects cover important sectors like infrastructure, healthcare, agriculture, urban development, and disaster management, among others, representing the developmental needs of Bhutan as well as India’s continued commitment towards ensuring inclusive and sustainable growth. Both countries also discussed the use of funds that have been provided under the scheme, which include ₹1,250 crore for the Economic Stimulus Programme, ₹735.20 crore for High Impact Community Development Projects, and ₹200 crore as Programme Grant.

During the visit, both the Foreign Secretaries together inaugurated Thimphu Ecological Park and Olakha Park under the 'Green Infrastructure and Open Spaces' project that was made possible through Project Tied Assistance in India. They also unveiled 45 electric vehicles which were procured under the "Accelerate e-Mobility Uptake in Bhutan" project.

The visit saw the signing of two important agreements. There was the signing of an Umbrella Line of Credit Agreement between India and Bhutan on behalf of the Government of Bhutan and EXIM Bank of India which will help in implementing a Line of Credit worth Rs.4,000 crore for projects related to energy. The other agreement was signed between AIIMS New Delhi and the Khesar Gyalpo University of Medical Sciences of Bhutan.

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Besides meeting the Prime Minister, during the visit to Bhutan, Vikram Misri also met the King Jigme Khesar Namgyel Wangchuck, the Prime Minister, Tshering Tobgay, and the Minister for Foreign Affairs and External Trade, D.N. Dhungyel. A wide array of topics was discussed, ranging from energy, trade and investment, connectivity, regional cooperation to people to people relations. The leaders of Bhutan acknowledged the role played by India in supporting its developmental efforts.

Both sides reiterated the fact that the partnership between India and Bhutan is based on the principles of mutual trust, mutual interest, and close people to people relationship. Both sides have agreed to conduct the next round of India-Bhutan Development Cooperation Talks at New Delhi on an appropriate date for both sides.