SF Prep Notes

Fifth India-Bhutan Development Cooperation Talks: Rs 4,000 crore line of credit, 12 new projects

At the fifth India-Bhutan Development Cooperation Talks in Thimphu (30–31 July 2026), the two sides exchanged a Rs 4,000 crore concessional Line of Credit agreement for energy projects and approved 12 new projects worth Rs 332 crore.

Summary

Foreign Secretary Vikram Misri visited Bhutan on 30–31 July 2026 to co-chair, with Bhutan's Foreign Secretary Pema Lektup Dorji, the 5th India-Bhutan Development Cooperation (Plan) Talks for Bhutan's 13th Five Year Plan. An Umbrella Line of Credit Agreement between Bhutan's government and EXIM Bank of India for a concessional Rs 4,000 crore credit for energy projects was exchanged, and an MoU was signed between AIIMS New Delhi and Khesar Gyalpo University of Medical Sciences. 12 new Project Tied Assistance projects worth Rs 332 crore were approved, taking the total to 82 projects worth Rs 6,860 crore under India's Rs 10,000 crore support for the plan.

Key facts

Talks
5th India-Bhutan Development Cooperation (Plan) Talks, 13th FYP
Co-chairs
Vikram Misri (India), Pema Lektup Dorji (Bhutan)
Line of Credit
Rs 4,000 crore concessional, EXIM Bank, for energy projects
Health MoU
AIIMS New Delhi – Khesar Gyalpo University of Medical Sciences
New projects
12 PTA projects worth Rs 332 crore
Total PTA
82 projects, Rs 6,860 crore
India's support for 13th FYP
Rs 10,000 crore

Practice MCQs 2 questions

Q1

During the fifth India-Bhutan Development Cooperation Talks in July 2026, a concessional Line of Credit of how much was operationalised for energy projects in Bhutan?

Show answer

Correct answer: C — Rs 4,000 crore

An Umbrella Line of Credit Agreement between Bhutan's government and EXIM Bank of India was exchanged for a concessional Rs 4,000 crore LoC for energy projects.

Q2 Advanced

India's development cooperation talks with Bhutan in July 2026 related to which Five Year Plan of Bhutan?

Show answer

Correct answer: C — 13th

The 5th India-Bhutan Development Cooperation Talks were held for Bhutan's 13th Five Year Plan (2024–29), for which India committed Rs 10,000 crore.

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