India and World – Bhutan


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India and World – Bhutan

Background

  • Diplomatic relations established in 1968
  • 1949: Treaty of Friendship and Cooperation
    • Basic framework of the India-Bhutan bilateral relations

 

Positives

  • Bilateral relations characterized by close trust and understanding and extensive cooperation in the field of economic development, particularly in the mutually beneficial sector of hydroelectric power

 

Recent happenings

  • Treaty of friendship was updated and signed during the visit of King Jigme Namgyel Wangchuk in 2007
    • The updated treaty lays the foundation for the future development of relationship in 21st century
    • Provides, among other things, for perpetual peace and friendship, free trade and commerce, and equal justice to each other’s citizens
  • Some agreements were signed in 2009 during the King’s visit
    • MoUs for preparation/updation of detailed project reports
    • For Development of ICT in Bhutan
    • Establishment of the Bhutan institute of Medical Sciences
    • Prevention of Illicit Trafficking in Narcotic Drugs
    • Air Services Agreement
    • For harmonisation of Seed Quality Testing and Standards for SAARC countries
    • Agreement for Search and Rescue Operation Services
    • Technical Assistance to the National Environment Commission of RGoB
    • For consultancy services for the prep of the National Transmission Grid Master Plan 7of Bhutan

 

Economic and Development cooperation

  • India is the largest trade and development partner of Bhutan
  • India has been extending financial assistance to Bhutan’s FYPs (first plan in 1961)
  • Some major projects carried out with Indian assistance
    • 1020 MW Tala HEP
    • 336 MW Chukha HEP
    • 60 MW Kurichhu HEP
    • Penden Cement Plant
    • Paro Airport
    • Bhutan Broadcasting Station
    • Major Highways
    • Electricity Transmission and Distribution System
    • Indo-Bhutan Microwave Link
    • Exploration of Mineral Resources
    • Survey and Mapping
  • GoI also provides support to Bhutan to develop various ‘mega projects’
    • Tala HEP
  • India to purchase at least 10000 MW of power from Bhutan by 2020
  • Ongoing Hydroelectric power projects
    • Amochhu Reservoir HEP
    • Kuri Gongri HEP
    • Chamkharchhu HEP
    • Kholongchhu HEP
    • Punatsangchhu –II
    • Mangdechhu HEP
  • GoI has also committed to establish a 1 million tonne cement project, Dungsum Cement Plant at Nganglam
  • First ever rail link between India Bhutan announced by PM MMS
    • Connectign Hashimara to Phuentsholing
    • Golden Jubilee Rail Line

 

<see rest in MEA PDF>

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