India and Bhutan Sign ₹4,000-Crore Concessional Line of Credit

On 31 July 2026, India and Bhutan signed a ₹4,000-crore (approximately Nu 40 billion) concessional Line of Credit (LoC). The agreement was exchanged between the Export-Import Bank of India (EXIM Bank) and Bhutan’s Ministry of Finance during the Fifth India-Bhutan Development Cooperation Talks held in Thimphu.

Line of Credit (LoC) in India’s External Development Assistance

A Line of Credit (LoC) is a financing arrangement through which a lending country provides funds to a partner country on concessional terms for specific development projects.

India extends LoCs to developing partner countries through the Export-Import Bank of India (EXIM Bank) as part of its Development Cooperation programme. These credit facilities are primarily used to finance projects related to infrastructure, energy, transportation, agriculture, and other sector-specific development initiatives.

Bhutan’s 13th Five-Year Plan (2024–2029)

The ₹4,000-crore LoC has been extended under Bhutan’s 13th Five-Year Plan (2024–2029). According to official documents, the primary focus of this credit assistance is the development of energy projects.

India has reaffirmed its commitment to provide ₹10,000 crore in overall development assistance for Bhutan’s 13th Five-Year Plan.

The assistance package includes:

• Project-Tied Assistance (PTA)
• High Impact Community Development Projects (HICDP)
• Economic Stimulus Programme (ESP)
• Programme Grant

Bhutan follows a Five-Year Plan system for national development planning, medium-term budgeting, and sectoral resource allocation.

Other Agreements and Areas of Cooperation

• On 31 July 2026, a Memorandum of Understanding (MoU) on medical research and education was exchanged between the All India Institute of Medical Sciences (AIIMS) and Bhutan’s Khesar Gyalpo University of Medical Sciences.
• India also handed over 45 electric vehicles (EVs) to Bhutan to support its green mobility initiatives.

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Brookfield Launches $600 Million Renewable Energy Platform Lumara in India

On 30 July 2026, global investment firm Brookfield launched a renewable energy platform named Lumara in India. The platform will invest US$600 million in solar power, wind power, and battery storage projects. It will begin operations with an initial portfolio of more than 6 gigawatts (GW) of installed capacity.

Lumara and Its Investment Structure

Lumara is being funded through Brookfield’s Catalytic Transition Fund. The platform is designed to accelerate the development of renewable energy generation and energy storage projects across India.

Key Features of the Platform

Lumara will primarily focus on the following three key segments of the renewable energy sector:

• Solar Power
• Wind Power
• Battery Energy Storage

In addition, the platform aims to address several key challenges that often delay renewable energy projects, including:

• Delays in Power Purchase Agreement (PPA) negotiations.
• Long waiting periods for grid connections.
• Extended timelines for land acquisition.

Brookfield’s Energy Presence in India

As of 30 July 2026, Brookfield has approximately 45 GW of wind and solar assets in operation or under development (pipeline) across India.

Brookfield’s total investments in India have exceeded US$32 billion, spanning multiple sectors, including the energy sector.

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