India to enhance support for Bhutan’s 5-yr plan, economic stimulus programme
Indian support forms the mainstay of funding for Bhutan’s five-year plans, and New Delhi provided aid worth Rs.5,000 crore for the 12th plan
New Delhi: India will step up support for Bhutan’s 13th five-year plan, including considering a request for an economic stimulus programme, and New Delhi’s development aid will be geared towards creating infrastructure and building connectivity.
The commitment to enhance backing for Bhutan’s next five-year plan was conveyed by Prime Minister Narendra Modi to his Bhutanese counterpart Tshering Tobgay during their meeting on Thursday.
Indian support forms the mainstay of funding for Bhutan’s five-year plans, and New Delhi provided aid worth Rs.5,000 crore for the 12th plan.
This was Tobgay’s first foreign visit after assuming office in January, and it will be followed by Modi’s trip to Bhutan during March 21-22, people familiar with the matter said on Saturday. The Indian leader’s brief visit, following the announcement of dates for the general election, underlines the importance attached by New Delhi to its ties with Thimphu.
During their meeting, the premiers acknowledged that the exemplary ties of friendship between India and Bhutan are a source of strength for the region, according to a joint statement issued on Saturday.
The two sides also pledged to further strengthen bilateral ties, and Modi said India is committed to supporting Bhutan’s quest to become a high-income nation in line with the vision of the Bhutanese king.
Tobgay thanked the Indian government for its development aid of Rs.5,000 crore for Bhutan’s last five-year plan, while Modi reiterated India’s commitment to “step up support for Bhutan’s 13th FYP, including to consider [a] request for the Economic Stimulus Programme”, the joint statement said.
India’s development aid will be geared towards developing infrastructure, building road, rail, air and digital connectivity, and supporting sectors such as agriculture, healthcare, education, skilling and cultural preservation, the joint statement added.
Modi appreciated the Bhutanese king’s vision of developing the “Gelephu Mindfulness City”, a green economic zone that is aimed at creating infrastructure and jobs, and said it will lead to sustainable economic prosperity manner and strengthen economic, and investment linkages between India and Bhutan.
The Bhutanese side is looking to India to support this flagship project with investment. The two sides are also looking to bolster connectivity through the development of rail and road links and upgrades of trade infrastructure for the seamless movement of people and goods. Besides the opening of additional points by the two sides for immigration and trade, India’s Northeast Frontier Railway (NFR) is carrying out the final location survey for two railway links between Banarhat (West Bengal) and Samtse (Bhutan) and Kokrajhar (Assam) and Gelephu (Bhutan).
Hydropower cooperation is another important pillar of bilateral economic partnership, and the two premiers directed officials to hold “expeditious consultations” for implementing new projects. The 1,020-MW Punatshangchhu-II hydropower project is expected to be commissioned in 2024, and the two leaders agreed to expand the existing energy partnership to non-hydro renewables such as solar and wind energy and green initiatives for hydrogen and e-mobility.
The people cited above said efforts by Bhutan to resolve a border dispute with China are expected to figure during Modi’s upcoming visit to Thimphu. The previous Bhutan government had signed an agreement with China to create a special body to demarcate the boundary. Concerns have grown on the Indian side that this move could have a bearing on national security, especially for the “chicken’s neck” or small piece of land that connects the northeastern states to the rest of the country.
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