India has released the second tranche of ₹500 crore to Bhutan for the development of infrastructure related to the GyalSung Project.
This comes less than a week after Prime Minister Narendra Modi on March 23 concluded a fruitful two-day state visit to Bhutan during which he assured Thimphu of New Delhi’s firm support in its quest for development and agreed to provide ₹10,000 crore to the Himalayan nation over the next five years.
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The second tranche was handed over by India’s Ambassador to Bhutan Sudhakar Dalela to Bhutan’s Minister of Foreign Affairs and External Trade, Lyonpo D N Dhungyel.
The first tranche of ₹500 crore was released on January 28 earlier this year.
“India is privileged to partner with Bhutan on a landmark initiative of His Majesty the King of Bhutan, which puts the youth and skilling at the heart of nation-building endeavours,” a statement from the Indian Embassy in Thimpu said on Tuesday.
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With this, the Government of India has released a total of ₹1,000 crore to the Government of Bhutan under the Memorandum of Understanding on the concessionary financing arrangements for the GyalSung Infrastructure Project, the statement said.
The MoU, signed in January 2024, provides a framework for the disbursal of ₹1,500 crore as concessionary financing to the Government of Bhutan for infrastructure development related to the GyalSung academies.
“This financing arrangement is in addition to the Government of India’s Plan Assistance to the Government of Bhutan,” it added.