PM Modi’s Bhutan Visit Strengthens Bilateral Ties with Hydropower, Credit Line & More
Prime Minister Narendra Modi’s two-day visit to Bhutan (March 21-22, 2024) reinforced India’s strategic and economic partnership with its Himalayan neighbor. The trip yielded major announcements, including a new hydropower project, financial aid, and connectivity upgrades. Here’s a detailed breakdown:
1. Kholongchhu Hydropower Project: Boosting Clean Energy
India and Bhutan finalized the 600 MW Kholongchhu Hydropower Plant, a joint venture between India’s SJVN and Bhutan’s DGPC. Located in eastern Bhutan, this project will:
– Enhance Bhutan’s energy security.
– Supply clean power to India, supporting renewable energy goals.
– Strengthen decades-old hydropower cooperation (existing projects: Chukha, Tala, Mangdechhu).
This aligns with Bhutan’s carbon-neutral targets and India’s green energy push.
2. Rs 4,000 Crore Credit Line for Bhutan’s Development
India announced a Rs 4,000 crore ($480 million) credit line to fund:
– Infrastructure development.
– Digital connectivity and e-governance.
– Agricultural modernization.
This builds on India’s past support, including a Rs 5,000 crore package for Bhutan’s 12th Five-Year Plan (2018).
3. Connectivity & Digital Infrastructure Upgrades
Key agreements include:
– Kokrajhar-Gelephu rail link upgrade to boost Assam-Bhutan trade.
– Jaigaon-Phuentsholing Integrated Check Post (ICP) for smoother cross-border movement.
– Digital infrastructure expansion, including fintech and e-governance.
These steps aim to reduce Bhutan’s trade dependency on third countries.
4. Strategic Counter to China’s Influence
PM Modi’s visit comes amid China’s growing overtures to Bhutan, including 2023 boundary talks. India’s commitments—hydropower, credit lines, and connectivity—signal proactive efforts to retain influence.
5. Cultural & Educational Collaboration
New initiatives focus on:
– More scholarships for Bhutanese students in India.
– Buddhist heritage tourism partnerships.
– Space technology cooperation, leveraging India’s expertise.
Conclusion: A Stronger India-Bhutan Alliance
The visit underscored India’s role as Bhutan’s top development partner through energy, finance, and strategic ties. As geopolitical dynamics shift, these collaborations ensure mutual growth.
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