Key Points

The Foreign Secretaries reviewed the full spectrum of bilateral engagements and noted the progress achieved in all key areas of cooperation. Specifically, they welcomed the successful commissioning of all six units of the 1020 MW Punatsangchhu-II hydropower project, which is a major milestone in the realization of the India-Bhutan Joint Vision on Energy Partnership.

They also expressed satisfaction at the ongoing development cooperation projects and initiatives being undertaken with Government of India support under Bhutan's 13th Five Year Plan, which were progressing well and bringing tangible benefits to the people of Bhutan.

During the visit, an Inter-Governmental MoU for the Establishment of Railway Links between India and Bhutan was signed. The MoU envisages establishment of the first set of cross-border rail links, connecting Kokrajhar and Gelephu, and Banarhat and Samtse. These projects are part of broader efforts to enhance connectivity between the two countries and will strengthen economic and people-to-people linkages, the MEA said.

These consultations build on the Development Cooperation Talks held in New Delhi on June 30, where Secretary (West) Tanmaya Lal led the Indian delegation and Foreign Secretary Aum Pema Choden led the Bhutanese delegation, laying the groundwork for the agreements and initiatives discussed today.

"India and Bhutan share an exemplary partnership characterised by trust, goodwill, mutual understanding at all levels, and strong bonds of friendship and close people-to-people ties," the Ministry of External Affairs said in a statement.

The Development Cooperation Talks were an important bilateral mechanism for reviewing the full spectrum of India-Bhutan's development partnership.

According to MEA, the Government of India (GoI) had committed support of INR/Nu. 10,000 Crore (100 billion) for Bhutan's 13th Five-Year Plan period (2024-2029), which would cover Project Tied Assistance (PTA) projects, High Impact Community Development Projects (HICDP), support for Economic Stimulus Programme (ESP) and budgetary support in the form of Programme Grant.

During the Talks, the two sides discussed various components of the support and reviewed the progress in the implementation of the projects approved in previous rounds.

A total of 61 PTA projects amounting to INR/Nu 4958 crores (49.58 billion) and 283 HICDPs amounting to INR/Nu 417 crores (4.17 billion), covering a wide range of sectors, were in various stages of implementation, as per MEA.

"Both sides agreed to make suitable revisions to the allocations for some of the PTA projects, taking into account the evolving requirements. GoI had also released INR/Nu 750 crores (7.50 billion) towards ESP and Rs. 100 crores (1 billion) as Programme Grant. The meeting reviewed the progress in the utilisation of these funds," MEA added.

As per the MEA, the Bhutanese side presented the second tranche of PTA project proposals to be implemented during the 13th FYP period. A total of 10 projects amounting to INR/Nu. 1113 Crores (11.13 billion), covering sectors such as healthcare, connectivity, urban infrastructure and livestock, were approved by the two sides.

Further the ministry highlighted that the Indian side "conveyed that it would continue to work together with the Royal Government of Bhutan on its development agenda, in line with the shared vision of King of Bhutan Druk Gyalpo and Prime Minister of India Narendra Modi, and based on the priorities of the Royal Government and the people of Bhutan."

The ministry noted that the talks were held in a "friendly and cordial atmosphere in keeping with the well-established tradition of regular exchanges and unique bonds of friendship and cooperation between the two countries."

"The two sides agreed to hold the next Development Cooperation Talks in Thimphu at a mutually convenient date," it added.

- ANI