India has extended financial assistance of Nu 1.24 billion to Bhutan to support key development initiatives under Bhutan’s 13th Five-Year Plan. The funding will be used for five major projects focusing on higher education infrastructure, irrigation development, agricultural expansion, governance research, and direct budgetary support.
The cheque was handed over during the 16th monthly coordination meeting between officials of the two governments, reflecting the ongoing cooperation between India and Bhutan in advancing Bhutan’s development priorities.
A significant portion of the funding—Nu 469 million—has been earmarked for strengthening infrastructure across eight colleges under the Royal University of Bhutan. The allocation will support both the construction of new facilities and the renovation of existing ones. Planned upgrades include improvements to science laboratories, staff housing and student hostels. The project will also introduce green energy initiatives and enhanced sports facilities to improve the academic environment.
Agricultural and rural development will also receive substantial support. An allocation of Nu 262 million has been set aside for the development and maintenance of irrigation channels. The initiative will cover 24 irrigation schemes across 17 districts and is expected to benefit more than 3,000 households, helping farmers improve crop productivity and water management.
Another Nu 202 million will be used to establish three mega farms in Pemathang and Samrang in Samdrup Jongkhar, as well as Yarjugang in Wangdue Phodrang. These farms are expected to create employment opportunities for De-suups and young people. The initiative will also involve open-air prisoners in farming activities, producing a range of fruits and vegetables to support food production and local markets.
In addition, Nu 60 million has been allocated to support research related to Bhutan’s socio-economic priorities and to strengthen governance frameworks. Civil society organisations, non-governmental organisations, and the Civil Society Organisation Authority are expected to play key roles in implementing this component.
The remaining Nu 250 million will be provided as direct budgetary support to the Government of Bhutan.
According to Bhutan’s finance ministry, work on the first four projects has already begun, signalling progress in implementing the country’s current development plan. The financial assistance underscores India’s continued partnership with Bhutan in supporting its long-term development goals.
