India, Bhutan approve 12 new development projects worth ₹332 crore at 5th Plan Talks
New Delhi, July 3. India and Bhutan on July 30 reviewed progress under Bhutan’s 13th Five-Year Plan (2024-29), approved 12 new development projects worth ₹332 crore and reaffirmed their commitment to expanding cooperation across sectors including development, energy, trade, connectivity and healthcare.
The decisions were taken during the fifth India-Bhutan Development Cooperation Talks, also known as the Plan Talks, co-chaired by Indian Foreign Secretary Vikram Misri and his Bhutanese counterpart Pema Lektup Dorji during Misri’s official visit to Bhutan from July 30 to 31.
During the visit, Misri called on Bhutan’s King Jigme Khesar Namgyel Wangchuck, Prime Minister Tshering Tobgay and Foreign Minister DN Dhungyel. The two sides held discussions on the full spectrum of bilateral ties, including development partnership, energy, trade and investment, connectivity, people-to-people exchanges and regional issues of mutual interest.
The talks reviewed the implementation of India’s financial assistance of ₹10,000 crore for Bhutan’s 13th Five-Year Plan, which covers Project Tied Assistance (PTA), High Impact Community Development Projects (HICDPs), the Economic Stimulus Programme (ESP) and programme grants.
According to the Ministry of External Affairs, the newly approved 12 PTA projects, valued at ₹332 crore, span infrastructure, healthcare, agriculture, urban amenities and disaster management. With the latest approvals, India has sanctioned a total of 82 PTA projects worth ₹6,860 crore under Bhutan’s current Five-Year Plan.
India has also released ₹1,250 crore under Bhutan’s ESP, ₹735.2 crore for HICDPs and ₹200 crore as programme grants. Both sides reviewed the utilisation of these funds during the meeting.
Reaffirming New Delhi’s commitment to Bhutan’s development priorities, the Indian side said its assistance would continue to be guided by the shared vision of the leadership of the two countries and aligned with the aspirations of the Bhutanese government and people. Bhutan, in turn, expressed appreciation for India’s continued support to its development agenda.
As part of the visit, the two Foreign Secretaries virtually inaugurated the Thimphu Ecological Park and Olakha Park, developed under the PTA project on green infrastructure and open spaces in Thimphu. They also handed over 45 electric vehicles procured under another India-supported project aimed at accelerating e-mobility in Bhutan.
The two sides also witnessed the signing of an umbrella Line of Credit agreement between the Royal Government of Bhutan and EXIM Bank of India to operationalise a concessional ₹4,000-crore credit line for energy projects in Bhutan.
In addition, the All India Institute of Medical Sciences (AIIMS), New Delhi, and Bhutan’s Khesar Gyalpo University of Medical Sciences signed a memorandum of understanding to promote collaboration in medical research, education, training and academic exchanges.
The two countries agreed to hold the next round of the India-Bhutan Development Cooperation Talks in New Delhi on a mutually convenient date.
India and Bhutan maintain close and longstanding ties marked by mutual trust, regular high-level exchanges and extensive development cooperation, with India remaining Bhutan’s largest development partner.
