India and Bhutan Sign MoUs on Rail Connectivity, Developmental Aid, and Hydropower Financing During Pema Choden’s Visit.

Aum Pema Choden, Foreign Secretary (FS) of the Royal Government of Bhutan, undertook a 2-day official visit to India from September 29–30, 2025, at the invitation of Vikram Misri, Secretary of the Ministry of External Affairs (MEA), Government of India (GoI). The visit underscored the deepening of India-Bhutan relations through discussions on infrastructure, developmental assistance, and energy cooperation.

      - During her visit, Aum Pema Choden held bilateral consultations with MEA Secretary Vikram Misri in New Delhi. The discussions focused on strengthening strategic ties, enhancing connectivity, and advancing the long-standing partnership between the two neighbors.

      - India announced plans to construct two cross-border rail links with Bhutan spanning 89 kilometers at an estimated cost of Rs 4,033 crore.

      - A formal intergovernmental MoU was signed between Satish Kumar, Chairman of the Railway Board, Ministry of Railways (MoR), and Bhutanese FS Aum Pema Choden, marking a historic step in Indo-Bhutan transport connectivity.

Main Point :-   (i) The Government of India pledged over Rs 10,000 crore in developmental assistance to Bhutan for its 13th Five-Year Plan (2024–2029).

      (ii) September 2025, Bhutan’s Kholongchhu Hydropower Limited (KHPL) signed a Rs 4,829 crore loan agreement with India’s Power Finance Corporation (PFC), a leading Non-Banking Financial Company (NBFC). The financing will support the 600 MW Kholongchhu Hydropower Project in Trashiyangtse Dzongkhag, Bhutan, furthering cooperation in clean energy.

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