Embassy of India

Official Spokesperson: External Affairs Minister Shri Pranab Mukherjee will be paying a three-day visit to Bhutan from 27th to 29th July at the invitation of the Royal Government of Bhutan. During the stay he is expected to receive an audience with His Majesty the King of Bhutan Jigme Kesar Namgyal Wangchuk and he will also be holding discussions with Prime Minister and Foreign Minister Lyonpo Khandu Wangchuk.

The visit is in the tradition of regular visits and exchanges at the highest level between the two countries and is expected to lead to further consolidation of the economic and political relations. Specifically, the visit is expected to result in the signing of a landmark agreement on the implementation of the 1095 MW Punatsangchhu-I hydroelectric project which is to be built in Bhutan with Indian assistance.

To give you the broader context of the relationship, as you know India and Bhutan share a uniquely warm and cordial relationship characterized by close consultations, maturity, complete trust and mutual understanding, and based on shared interests and mutually beneficial cooperation. In fact, this relationship has been known to be the exemplary model of good neighbourly relations. The Fourth King of Bhutan Jigme Singye Wangchuck was the Chief Guest at the Republic Day celebrations in January 2005, and later visited India in August 2005 and July 2006. In April 2007, the Prime Minister of Bhutan Lyonpo Khandu Wangchuk led the Bhutanese delegation for the SAARC Summit.

The present King of Bhutan visited India in February 2007 when the India-Bhutan Friendship Treaty was signed marking a historic moment of this relationship. That Treaty, as you recall, reflects a mutual desire to enhance the relationship to an even higher level of cooperation and goodwill to meet the aspirations of the two peoples for a better life. The present visit by the External Affairs Minister will be the first high-level engagement following the visit of King of Bhutan in February 2007, and EAM himself had visited Bhutan in December 2006 when he had gone to extend the invitation for the SAARC Summit.

As regards other aspects of the relationship, India is the largest trade and development partner of Bhutan. We have a free trade regime that exists between the two countries. The bilateral agreement on trade, commerce and transit provides for continued free-trade arrangements between India and Bhutan with simplified procedures and additional facilities and sixteen entry/exit points in India for Bhutans trade with third countries. India accounts for 98 per cent of Bhutans total exports and 90 per cent of Bhutans total imports. In terms of support for Bhutanese economic development as reflected in our support for the Five Year Plans, in March 2007 the Government of India approved a revised financial assistance package of Rs.2610 crore for Bhutans Ninth Five-Year Plan.

The hydropower sector is a key element of the mutually beneficial cooperation. In July 2006, an agreement was signed on cooperation in this sector wherein India has agreed to import a minimum of 5000 MW of electricity from Bhutan by 2020. We have so far invested about Rs.5000 crore in the construction of three hydro projects – Chukkha, Kurichu and Tala. These have a combined installed capacity of about 1400 MW which supply India with power and have in the process also become symbols of Indo-Bhutanese friendship and partnership for mutual benefit. Earnings from the sale of this electricity account for a sizeable percentage of Bhutans revenues. It is against this backdrop that the current landmark agreement on the implementation of the Punatsangchhu-I project will be signed by the External Affairs Minister with his counterpart Foreign Minister Lyonpo Khandu Wangchuk of Bhutan. This is a run of the river project and will be the largest of its kind in Bhutan to be funded by the Government of India.

Other aspects still, as you know India and Bhutan share a common boundary of about 700 kilometres. The open borders, visa-free regime, and duty-free trade could not have been sustainable without the complete understanding between the two leaderships. The military operations conducted by the Bhutanese Army in December 2003 and January 2004 against Indian insurgent groups in Bhutan were a milestone in our joint response against terrorist activities. And we look forward to continuing this cooperation by jointly upgrading border infrastructure and management including through better roads and communication links.

I think that should give you sufficient context. The External Affairs Minister leaves on 27th morning and returns on 29th. Thereafter, the very next day on the 30th he will be going to Manila to attend the ARF meeting. On that we shall give you some more information later.

Also, I think already you have seen a press release earlier about the delegation which represented India at the funeral of His Majesty Zahir Shah, Baba-e-Millat of Afghanistan. Minister of Water Resources Saifuddin Soz represented India and was accompanied by the Deputy Chairperson of Rajya Sabha Mr. K. Rahman Khan, as well as by Joint Secretary in the External Affairs Ministry Shri T.C.A. Raghavan and, of course, our Ambassador Shri Rakesh Sood. Paying homage to King Zahir Shah, Minister Soz recalled the efforts and programmes initiated by His Majesty Zahir Shah to build the modern Afghanistan. In recollecting His Majestys affection and friendship with Government and people of India, Minister Soz paid rich tributes to the contribution of His Majesty in strengthening the relationship between the two countries. Conveying the condolences on behalf of the Government and people of India, he added an era has ended in the history of Afghanistan.

That was all yesterday. That is all I have from my side. Obviously you have some more.

Question: What about the Indo-US nuclear agreement? Will we be briefed at all on that?
Official Spokesperson: There will be a briefing. We will let you know as and when.

Question: There is talk that both sides will be simultaneously announcing...
Official Spokesperson: External Affairs Minister has already made a statement this morning. Once we schedule a briefing we shall certainly tell you. That is all about this.

Question: On Bhutan, will the agreement on the hydroelectric project be signed or is it only expected to be signed?
Official Spokesperson: That is expected. The agreement is ready for signing. It is expected to be signed during the visit.

Question: There was story today in the Express about the Belgian Embassy asking the MEA for help on a court hearing on their diplomat who was killed. Do you have anything on that?
Official Spokesperson: I did confirm that yes there has been a communication from the Belgian Embassy to MEA stating the facts which were mentioned in the story. More than that I cannot say anything.

Question: When was the communication received and what is MEA doing on it?
Official Spokesperson: I think the communication has been received yesterday. As to what can be done in this by MEA, I do not want to say because this is a judicial matter. So, that is all I can say at the moment.

Question: Any updates from Australia on Haneef?
Official Spokesperson: No specific update except that you have probably seen the media reports that I have seen that his second cousin has met Dr. Haneef and he is in good health. This has already come out and that is where matters stand at the moment.

Question: Is the Indian High Commission still in touch?
Official Spokesperson: We have consular access to Dr. Haneef. Whatever possible assistance can be extended under the provisions of consular access will be extended.

Question: Asking for clarification the High Commission in Canberra yesterday saying that there is a ..(inaudible)… legal assistance. What exactly does that mean?
Official Spokesperson: I think the family already has lawyers. So, I think it is a question of identifying people, helping people etc. I think when even the second cousin Mr. Siddique has met Dr. Haneef and also thereafter they have their lawyers and they are in touch with them. But if any specific problems arise, being in Australia naturally our High Commission has a role to clarify and to assist.

Question: Have our High Commission in London got consular access to Sabeel?
Official Spokesperson: I will have to check if there is any development on that.

(Concluded)