India and Bhutan Sign ₹4,000 Crore Credit Line Agreement and Approves 12 New PTA Projects

India and Bhutan reviewed the implementation of development projects during the fifth India-Bhutan Development Cooperation Talks held on Thursday, as per The Economic Times news report.  

The meeting was co-chaired by India's Foreign Secretary Vikram Misri and Bhutan's Foreign Secretary Dasho Pema Lektup Dorji. The discussions covered projects being implemented under Bhutan's 13th Five-Year Plan (13th FYP). 

Credit Line and Health Agreement 

During the meeting, the Export-Import Bank of India and Bhutan's Ministry of Finance exchanged an agreement for a concessional Line of Credit worth ₹4,000 crore (Nu 40 billion). The funding will be used for development activities in Bhutan. 

The two countries also exchanged a memorandum of understanding between the All India Institute of Medical Sciences (AIIMS) and Bhutan's Khesar Gyalpo University of Medical Sciences. The agreement covers collaboration in health education and research. 

New Projects Approved 

Twelve new Project Tied Assistance (PTA) projects worth INR/Nu 3,320 million (₹332 crore) were approved. The projects relate to infrastructure, healthcare, agriculture, urban amenities and disaster management. 

With these approvals, the total number of PTA projects cleared under Bhutan's current Five-Year Plan has risen to 82. Their combined value stands at INR/Nu 68,600 million (₹6,860 crore). 

Review of Earlier Funding 

The meeting also reviewed the utilisation of funds released by India under different programmes. These include INR/Nu 12,500 million (₹1,250 crore) for Bhutan's Economic Stimulus Programme, INR/Nu 7,352 million (₹735.20 crore) for High Impact Community Development Projects and INR/Nu 2,000 million (₹200 crore) under the Programme Grant.  

The two foreign secretaries also virtually inaugurated the Thimphu Ecological Park and Olakha Park, developed under the Green Infrastructure and Open Spaces in Thimphu project funded by India. India also handed over 45 electric vehicles to the Royal Government of Bhutan. 

Bilateral Development Partnership 

India has been providing financial and technical assistance to Bhutan for infrastructure, connectivity, education, healthcare and capacity-building projects over the years.  

During the discussions, both sides reviewed the progress of these programmes and the implementation of projects under the 13th Five-Year Plan.  

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Conclusion  

The latest round of development talks resulted in a new Line of Credit agreement, approval of additional projects and a review of existing programmes under Bhutan's 13th Five-Year Plan. 

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