India, Bhutan sign ₹4,000 crore LoC, review development partnership

India and Bhutan on Thursday reviewed the progress of development projects supported by New Delhi in the Himalayan nation, as the two sides signed a concessional line of credit agreement worth ₹4,000 crore and expanded cooperation in the health sector.

The fifth India-Bhutan Development Cooperation Talks, co-chaired by Foreign Secretary Vikram Misri and Bhutanese Foreign Secretary Dasho Pema Lektup Dorji, focused on the implementation of projects under Bhutan's 13th Five-Year Plan (2024-29). The Indian Embassy in Bhutan said in a social media post that the two sides reviewed the progress of India-supported projects across diverse sectors.

Bhutan appreciated India's significant support and its contribution to the country's socio-economic development, the mission said. According to a joint press release issued by the Ministry of External Affairs (MEA), both sides reviewed the overall progress in utilising India's support of ₹10,000 crore for Bhutan's 13th FYP period. This support covers Project Tied Assistance (PTA) projects, High Impact Community Development Projects (HICDP), Economic Stimulus Programme (ESP) and the Programme Grant.

The talks resulted in the approval of 12 new PTA projects amounting to ₹332 crore, spanning sectors such as infrastructure, healthcare, agriculture, urban amenities and disaster management. With this, a total of 82 PTA projects have been approved under the 13th FYP, amounting to ₹6,860 crore.

India has also released ₹1,250 crore towards the Economic Stimulus Programme, ₹735.20 crore towards High Impact Community Development Projects and ₹200 crore towards the Programme Grant. The meeting reviewed the progress in utilisation of these funds.

In a symbolic move, the two foreign secretaries virtually inaugurated the Thimphu Ecological Park and the Olakha Park, developed under the 'Green Infrastructure and Open Spaces in Thimphu' project funded by India as part of bilateral economic development.

An agreement for a concessional line of credit of ₹4,000 crore (Nu 40 billion) was exchanged between the Export-Import Bank of India and Bhutan's Ministry of Finance to support development initiatives in the country. Additionally, a Memorandum of Understanding (MoU) for cooperation in health education and research was exchanged between the All India Institute of Medical Sciences (AIIMS) and Bhutan's Khesar Gyalpo University of Medical Sciences.

As part of India's support for Bhutan's green mobility initiatives, 45 electric vehicles were handed over to the Royal Government of Bhutan.

Mr. Misri was on a two-day visit to Bhutan from July 30 to 31 to co-chair the talks. During the visit, he also called on King Jigme Khesar Namgyel Wangchuck, Prime Minister Dasho Tshering Tobgay, and Minister for Foreign Affairs and External Trade Lyonpo D.N. Dhungyel.

India is Bhutan's largest development partner and has been extending financial and technical assistance for infrastructure, connectivity, education, health and capacity-building projects over the decades. New Delhi has committed support for Bhutan's 13th Five-Year Plan as part of its longstanding development partnership with the neighbouring Himalayan kingdom.