The Government of India has released Nu 1.24 billion (₹124 crore) to the Royal Government of Bhutan (RGoB) as part of its ongoing commitment to Bhutan’s 13th Five-Year Plan (FYP). The funds were handed over on 3 March 2026 during the 16th Monthly Coordination Meeting (MCM) between the Embassy of India in Thimphu and Bhutan’s Ministry of Finance.
The cheques were presented by the Deputy Chief of Mission of the Indian Embassy to officials from Bhutan’s Department of Macro-Fiscal and Development Finance. The meeting was co-chaired by the Deputy Chief of Mission and the Director General of the Department of Macro-Fiscal and Development Finance. Senior officials from relevant ministries and agencies of both sides attended the session.
The Nu 1.24 billion has been allocated across five key areas. Nu 469 million for the development of quality infrastructure at the Royal University of Bhutan (RUB), covering eight colleges. The funds will support new construction, renovation, technological upgrades, science laboratories, staff quarters, student hostels, green energy initiatives, safety measures, and improved sporting facilities.
Nu 262 million has been allocated as the next tranche for the “Development and Maintenance of Irrigation Channels” project. This will cover 24 irrigation schemes across 17 Dzongkhags, spanning 141.26 km and irrigating 5,511 acres to benefit 3,161 households.
Nu 202 million will be used for establishing three mega commercial farms in Pemathang and Samrang in Samdrup Jongkhar and Yarjugang in Wangduephodrang. The farms will focus on fruits and vegetables using advanced technologies and will employ De-suups, youth, and Open Air Prisoners.
Nu 60 million was released for Strengthening Good Governance and Research, including support to Civil Society Organizations (CSOs), NGOs, and the CSO Authority, as well as exchange programmes with Indian institutions for public agencies, CSOs, and think tanks.
Nu 250 million has been allocated as the seventh tranche of the Programme Grant — direct budgetary support from India to the RGoB.
In addition to the fund release, the two sides reviewed progress on other Government of India-supported projects under the 13th FYP. These include professional development and exchange programmes for teachers and students, enhancement of healthcare services including recruitment of Indian nurses for Jigme Dorji Wangchuck National Referral Hospital, construction of the 500 kW Lunana Mini Hydropower Project to electrify Bhutan’s last 10 unelectrified villages, and Phase-II infrastructure development at the JSW School of Law.
Both sides expressed commitment to smooth implementation of all projects under the 13th FYP.
