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Trade on agenda as PM Modi visits Bhutan next week
India continues to be a key development partner for Bhutan against the backdrop of efforts by Beijing to woo Thimphu.
Prime Minister Narendra Modi’s visit to Bhutan next week will be the occasion for moves by India to diversify its partnership with the kingdom by shifting the focus from the hydro-power sector to enhanced trade and linkages in sectors such as space and education.
India continues to be a key development partner for Bhutan against the backdrop of efforts by Beijing to woo Thimphu. India is providing Rs 5,000 crore for Bhutan’s 12th five-year plan that began in 2018, the same as the allocation for the previous plan.
However, sections of the Bhutanese political establishment have called for a shift away from the hydro-power sector and some have also advocated stronger diplomatic ties with China.
Briefing reporters on Friday about Modi’s visit on August 17-18, foreign secretary Vijay Gokhale said India will retain its role as a developmental partner but intends to make the relationship more broad-based. As part of these efforts, India will provide Rs 400 crore for a trade support facility to encourage Bhutanese exporters.
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“Our objective is to diversity the relationship from simply being based on hydro-power cooperation to other areas where we want to collaborate with Bhutan. So this is a special focus and a special package is being given in this five-year plan as trade support for companies and manufacturers to incentivise them to export more to India,” he said.
However, hydro-power will continue to be an important sector, with Modi and his Bhutanese counterpart set to dedicate the Rs 5,012-crore Mangdechhu project with a capacity of 720 MW. The two sides will also sign a power purchase agreement for this project and begin talks on the planned 2,500 MW Sankosh project.
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The two prime ministers will also inaugurate a Rs 7-crore ground earth station built by India’s space agency to allow Bhutan to use a transponder on the South Asian Satellite for broadcast services and disaster management. The Rupay card will also be launched in Bhutan, Gokhale said.
Against the backdrop of a fall in the numbers of Bhutanese students in India, there will be a move to link universities in the two countries and Modi will deliver an address at the Royal University of Bhutan to reach out to youngsters.
Besides talks with his Bhutanese counterpart, Modi will meet King Jigme Khesar Namgyel Wangchuck and his father Jigme Singye Wangchuck.
