New Delhi, Nov. 12 -- India has extended a concessional line of credit worth Rs 4,000 crore to Bhutan to support the development of new energy projects, reinforcing bilateral cooperation in the hydropower sector.

The announcement coincided with the joint inauguration of the 1,020-MW Punatsangchhu-II hydroelectric project by Prime Minister Modi and Bhutan's King Jigme Khesar Namgyel Wangchuck.

Developed with Indian assistance, the project marks a key milestone in the two countries' long-standing energy partnership and is expected to significantly increase Bhutan's electricity generation capacity while strengthening power trade with India.

During talks in Thimphu, Modi also announced efforts to improve cross-border connectivity, includin...