Aum Pema Choden, Foreign Secretary (FS) of Royal Government of Bhutan, was on a 2-day official visit to India from September 29 to 30, 2025, at the invitation of Vikram Misri, Secretary of Ministry of External Affairs (MEA), Government of India (GoI).
Exam Hints:
- What?Bhutan’s FS Aum Pema Choden visited India
- Invited by: Vikrim Misri, Secretary, MEA (India)
- Key Outcomes:
- Announcement of two cross-border rail links
- India’s developmental assistance: Rs.10,000 crore
- Commissioning of 1,020 MW Punatsangchhu-II Hydropower Project
- Total Cost of Rail Links: Rs 4,033 Crore
- Total Length: 89 km
- Rail Links: Kokrajhar-Gelephu (Rs 3,456 crore) and Banarhat-Samste (Rs 577 crore)
- Indian States: Assam and West Bengal (WB)
- KHPL & PFC Agreement:
- Loan: Rs.4,829 crore
- Purpose: Finance 600 MW Khorlochhu Hydropower Project
Key Highlights of the Visit:
Meeting:
Bilateral Consultations: During the visit, Bhutanese FS Pema Choden held bilateral consultations with Vikrim Misri in New Delhi, Delhi.
Review : During the bilateral meeting, the FSs of both countries reviewed the wide spectrum of bilateral engagements and expressed satisfaction with the progress achieved in all key areas of cooperation.
- Both countries welcomed the commissioning of the 1,020 Mega Watt (MW) Punatsangchhu-II Hydropower Project in Bhutan.
Developmental Assistance : The Government of India (GoI) has also pledged over Rs 10,000 crore in developmental assistance to Bhutan for its 13th Five-Year Planning (from 2024-29).
Cross-Border Rail Connectivity:
Overview: The GoI announced its plan to construct 89 kilometer (km)-long two cross-border rail links with Bhutan at an estimated cost of Rs 4,033 crore.
Formalization of MoU: Satish Kumar, Chairman of Railway Board, Ministry of Railways (MoR) has signed a formal intergovernmental MoU with Aum Pema Choden, FS of Bhutan, for the establishment of rail links between India and Bhutan.
Background: The initiative was formalized during Prime Minister(PM) Narendra Modi’s visit to Bhutan in March 2024.
Rail Routes: The 1st rail link spanning 69 km will connect Kokrajhar, Assam (India) with Gelephu (Bhutan).
- While, the remaining 20 km long rail link will connect Banarhat, West Bengal,WB(India) with Samtse (Bhutan).
Kokrajhar-Gelephu: This rail link will be constructed at a cost of Rs 3,456 crore and is expected to be developed over the next 4 years. It will feature 6 stations, 2 viaducts, approximately 100 bridges (including 29 major bridges and 65 minor bridges), and 40 underpasses.
Banarhat-Samste: This 2nd rail link will be constructed at a cost of Rs 577 crore and is expected to be completed over the next 3 years. It will feature 2 stations, 25 bridges (including, 1 major flyover and 24 minor bridges), and 37underpasses.
Significance: These two new rail links are expected to provide Bhutan access to 1,50,000 km of the Indian Railway (IR) network.
Bhutan’s KHPL Signed Loan Agreement with PFC:
Signatories: In September 2025, Bhutan’s Kholongchhu Hydropower Limited (KHPL) has signed a loan agreement worth Rs 4,829 crore with India’s Non-Banking Financial Company (NBFC), Power Finance Corporation (PFC).
- This newly signed agreement also has a provision for additional standby credit facility of Rs 950 crore.
Purpose: To finance 600 MW Khorlochhu Hydropower Project in Trashiyangtse Dzongkhag, Bhutan.
Developed by: The project is being developed by KHPL, established as 60:40 Joint Venture (JV) between Bhutan’s Druk Green Power Corporation Limited (DGPC) and India’s Tata Power Company Limited (TATA POWER), respectively.
Total Cost: The project will be constructed at an estimated cost of Rs 6,900 crore and is expected to be commissioned in 2029-30.
Significance: This hydropower project is expected to generate 2,524 Million Units (MU) of electricity annually. This will enhance Bhutan’s energy grid capacity and enable the export of surplus power to India during the summer season.
About Bhutan:
Prime Minister (PM)- Dasho Tshering Tobgay
Capital– Thimphu
Currency- Bhutanese Ngultrum(BTN)
