India has announced support for Bhutan’s Gelephu Mindfulness City (GMC) project, aimed at creating an environmentally friendly urban hub in southern Bhutan. The initiative will promote trade, tourism, and connectivity between the two countries.
During his 2 day visit to Bhutan, PM Narendra Modi highlighted the importance of connecting Gelephu and Samtse to India’s rail network. Two cross‑border rail links are planned: a 69 km line from Kokrajhar (Assam) to Gelephu, and a 20 km line from Banarhat (West Bengal) to Samtse. The combined cost of these rail projects is ₹4,033 crore.
India will also establish an immigration checkpoint near Gelephu to facilitate smoother movement of people and goods.
In addition to infrastructure support, India has offered Bhutan a line of credit of ₹4,000 crore for hydropower and renewable energy projects. Bhutan currently generates 100 % of its electricity from renewable sources. The financing is expected to support projects including the 1,020 MW Punatsangchu‑II Hydroelectric Project.
PM Modi said these initiatives reflect India’s commitment to strengthening economic and strategic ties with Bhutan and supporting its development goals.