India and Bhutan welcomed the signing of an agreement for a concessional Line of Credit of ₹4,000 crore for energy projects in Bhutan during External Affairs Minister S. Jaishankar's official visit to Bhutan from September 16–18, 2026, the Ministry of External Affairs said in a joint press release.
Jaishankar visited at the invitation of Bhutanese Foreign Affairs and External Trade Minister D. N. Dhungyel. The two ministers reviewed bilateral cooperation and regional and international issues, and expressed satisfaction with progress in the India–Bhutan energy partnership.
They noted recent milestones in energy cooperation, including the inauguration of the 1,020 MW Punatsangchhu-II Hydroelectric Project and the signing of its Tariff Protocol, and the resumption of dam construction for the 1,200 MW Punatsangchhu-I Hydroelectric Project. The ministers welcomed active engagement of Indian companies in hydropower projects in Bhutan.
During the visit the ministers jointly inaugurated or launched a series of development projects: the 65‑bedded Gyaltsuen Jetsun Pema Mother and Child Hospital in Mongar, the Jaganathan Bridge on the Samdrup Jongkhar–Trashigang Highway, and the 500 kW Lunana Hydropower Project. India handed over 54 electric vehicles to the Royal Government of Bhutan and transferred 43 Jersey cows to the National Cattle Breeding Centre in Bumthang.
The two sides also discussed border connectivity, digital payments, education and space cooperation. They welcomed operationalisation of a UPI‑based facility enabling Bhutanese nationals to make digital payments in India using Bhutanese mobile applications, and noted progress on the Gelephu–Kokrajhar and Samtse–Banarhat cross‑border rail links. India reaffirmed its commitment to establish an Immigration Check Post at Hatisar in Assam to facilitate movement of investors and visitors to Gelephu.
On education cooperation, the ministers agreed to increase scholarship allocations for Bhutanese students, and the two sides exchanged diplomatic courtesies: India thanked Bhutan for its support for India’s candidature for a non‑permanent seat on the United Nations Security Council for the 2028–2029 term, and Bhutan ratified the Framework Agreement of the International Big Cat Alliance. Jaishankar invited the Bhutanese Foreign Affairs and External Trade Minister to visit India at his earliest convenience.