According to The Economic Times, India and Bhutan signed a Rs 4,000-crore Line of Credit (LoC) agreement alongside the fifth India-Bhutan Development Cooperation Talks, which were co-chaired by Foreign Secretary Vikram Misri and Bhutanese counterpart Dasho Pema Lektup Dorji on Thursday. The talks reviewed the implementation of projects under Bhutan's 13th Five-Year Plan, part of a development partnership in which India is Bhutan's largest development partner.
Development cooperation talks: review and implementation
The fifth India-Bhutan Development Cooperation Talks, co-chaired by Foreign Secretary Vikram Misri and his Bhutanese counterpart Dasho Pema Lektup Dorji, focused on the implementation of projects under Bhutan's 13th Five-Year Plan, the Indian Embassy in Bhutan said in a social media post cited by the report. The two sides reviewed progress and implementation of India-supported projects across diverse sectors, the embassy added.
The mission reported that Bhutan appreciated India's significant support and its contribution to the country's socio-economic development. The LoC agreement, disclosed in the article headline, represents the latest financing instrument under this partnership.
Green mobility and sectoral support
As part of India's support for Bhutan's green mobility initiatives, 45 electric vehicles were handed over to the Royal Government of Bhutan, according to The Economic Times. India has extended financial and technical assistance for infrastructure, connectivity, education, health and capacity-building projects over the decades.
India is Bhutan's largest development partner and has been extending financial and technical assistance for infrastructure, connectivity, education, health and capacity-building projects over the decades.
New Delhi has committed support for Bhutan's 13th Five-Year Plan as part of its longstanding development partnership with the Himalayan kingdom, the report said.
Line of Credit and related financing flows
The Rs 4,000-crore Line of Credit agreement forms the central financing element reported in the latest round of India-Bhutan cooperation. The Economic Times article also referenced two related items: India handing over a Rs 2.5 billion cheque to Bhutan as the fifth tranche towards the Economic Stimulus Programme, and India and Bhutan discussing ways to boost energy cooperation.
| Item | Detail |
|---|---|
| Instrument | Line of Credit (LoC) agreement |
| Reported amount | Rs 4,000 crore |
| Talks | Fifth India-Bhutan Development Cooperation Talks |
| Co-chairs | Vikram Misri; Dasho Pema Lektup Dorji |
| Agenda | Bhutan's 13th Five-Year Plan project implementation |
| Electric vehicles handed over | 45 |
| Related transfer | Rs 2.5 billion cheque (5th tranche, Economic Stimulus Programme) |
What the agreement covers for project financing
The LoC agreement adds to a documented pipeline of India-supported financing for Bhutan's 13th Five-Year Plan, with project sectors spanning infrastructure, connectivity, education, health and capacity-building. The green mobility component is reflected in the 45 electric vehicles delivered to the Royal Government of Bhutan. The review mechanism for this financing is the Development Cooperation Talks, where, according to the Indian Embassy in Bhutan, the progress and implementation of India-supported projects were discussed.
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