
India, Bhutan sign MoU on cross-border rail links; review energy, development ties
Sep 29, 2025
New Delhi [India], September 29 : Foreign Secretary Vikram Misri on Monday welcomed his Bhutanese counterpart Aum Pema Choden in New Delhi, the Ministry of External Affairs (MEA) said.
The two Foreign Secretaries "reviewed the full spectrum of bilateral cooperation and reaffirmed the commitment of both sides to further strengthen the special India-Bhutan friendship," MEA spokesperson Randhir Jaiswal posted on X.
https://x.com/MEAIndia/status/1972695055086354628
In an official statement, the MEA said the Foreign Secretaries reviewed the full spectrum of bilateral engagements and noted the progress achieved in all key areas of cooperation.
They welcomed the successful commissioning of all six units of the 1020 MW Punatsangchhu-II hydropower project, describing it as a major milestone in the realisation of the India-Bhutan Joint Vision on Energy Partnership.
Both sides also expressed satisfaction with ongoing development cooperation projects under Bhutan's 13th Five-Year Plan, which are progressing well with the Government of India's support and bringing tangible benefits to the Bhutanese people.
During the visit, an Inter-Governmental MoU for the Establishment of Railway Links between India and Bhutan was signed. The agreement envisions the first set of cross-border rail links, connecting Kokrajhar and Gelephu, as well as Banarhat and Samtse. These projects aim to enhance connectivity and strengthen economic and people-to-people linkages, the MEA added.
The consultations built on the Development Cooperation Talks held in New Delhi on June 30, where Secretary (West) Tanmaya Lal led the Indian side and Aum Pema Choden led the Bhutanese delegation. Those discussions laid the groundwork for several agreements and initiatives concluded during the present visit.
"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 MEA said in its statement.
According to the ministry, the Government of India has committed support of INR/Nu. 10,000 Crore (100 billion) for Bhutan's 13th Five-Year Plan (2024-2029). This covers Project Tied Assistance (PTA) projects, High Impact Community Development Projects (HICDP), support for the Economic Stimulus Programme (ESP) and budgetary support in the form of Programme Grant.
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), across sectors, are currently in various stages of implementation. Both sides agreed to make suitable revisions to some PTA allocations, taking into account evolving requirements.
The MEA further noted that GoI had released INR/Nu 750 crores (7.50 billion) towards ESP and INR/Nu 100 crores (1 billion) as Programme Grant. The meeting reviewed the progress in utilisation of these funds.
The Bhutanese side also 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 healthcare, connectivity, urban infrastructure and livestock, were approved.
The Indian side conveyed that it would continue to work 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 Narendra Modi, and based on the priorities of the Royal Government and the people of Bhutan.
The MEA said 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." It added that the next Development Cooperation Talks will be held in Thimphu at a mutually convenient date.