India and Bhutan reviewed the progress of their development partnership under Bhutan’s 13th Five-Year Plan (2024-29) during the fifth India-Bhutan Development Cooperation Talks, approving 12 new Project Tied Assistance (PTA) projects worth Rs 332 crore.
Indian Foreign Secretary Vikram Misri visited Bhutan on July 30-31 at the invitation of his Bhutanese counterpart, Pema Lektup Dorji, to co-chair the Development Cooperation Talks.
During the visit, Misri called on the King of Bhutan, Prime Minister Tshering Tobgay and Foreign Affairs and External Trade Minister D.N. Dhungyel.
According to a joint press release, the two sides reviewed cooperation across a wide range of sectors, including development partnership, energy, trade and investment, connectivity, people-to-people ties and regional issues of mutual interest.
The talks also reviewed the implementation of the Government of India’s Rs 10,000 crore support package for Bhutan’s 13th Five-Year Plan. The assistance includes funding for Project Tied Assistance projects, High Impact Community Development Projects (HICDPs), the Economic Stimulus Programme (ESP) and Programme Grants.
With the approval of the 12 new projects, the total number of PTA projects under the current Five-Year Plan has risen to 82, with a cumulative outlay of Rs 6,860 crore. The newly approved projects span infrastructure, healthcare, agriculture, urban development and disaster management.
India has also released Rs 1,250 crore under the Economic Stimulus Programme, Rs 735.20 crore for High Impact Community Development Projects and Rs 200 crore as Programme Grant. The two sides reviewed the utilisation of these funds during the meeting.
The Indian delegation reaffirmed New Delhi’s commitment to supporting Bhutan’s development priorities, guided by the shared vision of the King of Bhutan and Prime Minister Narendra Modi and aligned with the priorities of the Royal Government of Bhutan and its people.
The Bhutanese side expressed appreciation for India’s continued assistance, describing it as crucial for implementing key programmes under the country’s 13th Five-Year Plan.
During the visit, the two Foreign Secretaries virtually inaugurated the Thimphu Ecological Park and Olakha Park, developed under the PTA project titled “Green Infrastructure and Open Spaces in Thimphu.” They also handed over 45 electric vehicles procured under the PTA project, “Accelerate e-Mobility Uptake in Bhutan,” to the Bhutanese government.
The two sides also witnessed the exchange of two key agreements. These included an Umbrella Line of Credit Agreement between the Royal Government of Bhutan and the Export-Import Bank of India (EXIM Bank) to operationalise a concessional Rs 4,000 crore Line of Credit for energy projects in Bhutan, and a Memorandum of Understanding between AIIMS New Delhi and Khesar Gyalpo University of Medical Sciences of Bhutan to promote collaboration in medical research, education and training.
According to the Indian Embassy in Bhutan, Misri briefed the King on the progress achieved under the development partnership during the Plan Talks and discussed various aspects of bilateral cooperation. In a post on X, the embassy said the King appreciated the progress made, shared updates on the Gelephu Mindfulness City (GMC) project and reiterated his support for further strengthening India-Bhutan ties.
Both sides agreed to hold the next India-Bhutan Development Cooperation Talks in New Delhi on a mutually convenient date.
The joint statement described India and Bhutan’s relationship as an “exemplary partnership” built on trust, goodwill, mutual understanding and close people-to-people ties, adding that the visit reflected the longstanding tradition of close engagement and cooperation between the two neighbours.
(With inputs from ANI)
