Overview The Prime Minister's visit to Bhutan on November 11, 2025 , yielded significant outcomes, reinforcing the strong bilateral relationship between India and Bhutan. Key highlights include the inauguration of the 1020 MW Punatsangchhu-II Hydroelectric Project , advancements in other hydroelectric projects, and agreements fostering cooperation in various sectors such as renewable energy, health, and mental health. These initiatives are vital for understanding India's foreign policy and its engagement with neighboring countries. Key Developments Inauguration of Punatsangchhu-II: The 1020 MW Punatsangchhu-II Hydroelectric Project , a collaborative effort between the Government of India and the Royal Government of Bhutan, was inaugurated. This project is a testament to the successful bilateral cooperation in the energy sector. Punatsangchhu-I Project: An understanding was reached to resume work on the main dam structure of the 1200 MW Punatsangchhu-I Hydroelectric Project . This project is crucial for Bhutan's energy security and economic development. Land Grant in Varanasi: A grant of land in Varanasi was announced for building a Bhutanese Temple/Monastery and Guest House, promoting cultural exchange and religious harmony. Immigration Check Post: A decision was made to establish an Immigration Check Post in Hatisar across Gelephu, facilitating smoother cross-border movement and trade. Line of Credit: An INR 4000 crore Line of Credit (LoC) was extended to Bhutan, supporting its developmental projects and economic growth. Memoranda of Understanding (MoUs) MoU on Cooperation in the field of Renewable Energy The MoU aims to institutionalize bilateral engagements in renewable energy, focusing on areas such as Solar energy, Wind energy, Biomass, Energy Storage, Green Hydrogen , and capacity building. The signatories were Lyonpo Gem Tshering , Minister for Energy and Natural Resources, RGoB, and Shri Pralhad Venkatesh Joshi , Minister for New and Renewable Energy, GoI. MoU on Cooperation in the field of Health and Medicine This MoU seeks to institutionalize bilateral health cooperation in areas including drugs, diagnostics and devices; maternal health; prevention and treatment of communicable/non-communicable diseases; traditional medicine; digital health interventions including telemedicine; and technical collaboration, joint research and capacity building of health professionals. The signatories were Mr. Pemba Wangchuk , Secretary, Ministry of Health, RGoB, and Shri Sandeep Arya , Ambassador of India to the Kingdom of Bhutan. MoU between PEMA Secretariat, Bhutan and National Institute of Mental Health and Neuro Sciences (NIMHANS) India The MoU will strengthen collaboration between the two institutions for capacity building of mental health professionals, and collaboration in developing in-country mental health courses for service enhancement and research. The signatories were Ms. Dechen Wangmo , Head of the PEMA Secretariat, Bhutan, and Shri Sandeep Arya , Ambassador of India to the Kingdom of Bhutan. UPSC Relevance This news article is highly relevant for the UPSC Civil Services Exam, particularly for GS Paper 2 (International Relations) and GS Paper 3 (Infrastructure, Economy, and Science & Technology) . The agreements and projects discussed highlight India's foreign policy objectives, its role in regional development, and its commitment to sustainable energy and healthcare cooperation. Important Facts for Prelims The Punatsangchhu-II Hydroelectric Project has a capacity of 1020 MW . The Line of Credit extended to Bhutan amounts to INR 4000 crore . The MoU on Renewable Energy covers areas like Solar energy, Wind energy, and Green Hydrogen . NIMHANS is collaborating with the PEMA Secretariat in Bhutan for mental health capacity building.