Embassy of IndiaThimphu

Bhutan in MEA Annual Report for the year 2019-20

A. Excerpts from Ministry of External Affairs Annual report related to Bhutan

India and Bhutan enjoy unique and special bilateral ties based on mutual trust and understanding, and reinforced by shared history and cultural heritage and strong people-to-people links. This exemplary bilateral ties between India and Bhutan, characterized by mutual trust and understanding, continued to be consolidated over the course of the year.

High level Exchanges

The tradition of regular high level visits and dialogues between the two countries continued with the visit of the Prime Minister, Lyonchhen Dr. Lotay Tshering, on 30 & 31 May 2019, to attend the swearing-in ceremony of the newly elected Indian Government.

Prime Minister Shri Narendra Modi undertook a State Visit to Bhutan on 17 & 18 August 2019. During his visit, Prime Minister received audience with H. M. Jigme Khesar Namgyel Wangchuck, the King of Bhutan, and held talks with Prime Minister Lyonchhen Dr. Lotay Tshering. Both Prime Ministers formally inaugurated the 720 MW Mangdechhu Hydroelectric Power Project, the Ground Earth Station for the utilization of South Asian Satellite in Thimphu, the inter-connection between India’s National Knowledge Network and Bhutan’s Research and Education Network, and launched the facility of use of Indian-issued RuPay cards in Bhutan. Ten MoU’s/Agreements were exchanged in different sectors including four on enhancement of Academic Exchanges and STEM cooperation between the Royal University of Bhutan, and IITs at Kanpur, Delhi and Mumbai and NIT Silchar. Space cooperation emerged as an increasingly important part of bilateral ties, with India agreeing to give increased bandwidth on an additional transponder of South Asia Satellite for expanded requirements of Bhutan, and a decision on joint development of a small satellite for Bhutan and development of a geoportal system for Bhutan.

Prime Minister also addressed the Bhutanese youth in a special event organized at the Royal University of Bhutan, where he highlighted the people-centric nature of bilateral ties and the deep spiritual and Buddhism connect between the two countries. Dr. S. Jaishankar, External Affair Minister (EAM) of India paid his maiden (abroad) visit to Bhutan from 7-8 June, 2019 after assuming charge of EAM. During the visit, EAM received audience with H.M. Jigme Khesar Namgyel Wangchuck, the King of Bhutan, calledon Lyonchhen Dr. Lotay Tshering, Prime Minister of Bhutan, and met his counterpart Lyonpo Dr. Tandi Dorji, Foreign Minister of Bhutan.

The Minister of Foreign Affairs of Bhutan Lyonpo Dr. Tandi Dorji paid an official visit to India from 17-23 November 2019. During the visit, he held bilateral discussions with EAM and reviewed the entire gamut of India-Bhutan relations, including economic cooperation, development partnership and hydropower cooperation. He also met with the Minister of Home Affairs, Shri Amit Shah. He also paid a visit to Bodhgaya, Rajgir and Kolkata. In Kolkata, he met with Governor of West Bengal, Shri Jagdeep Dhankhar.

Foreign Secretary paid official visits to Bhutan on 04- 05 July 2019 and 03-04 December 2019. He held discussions with the Bhutanese leadership on a range of bilateral matters, including high-level exchanges, economic and development co-operation, hydropower co-operation, and people-to-people ties. Secretary (Power) visited Bhutan on 23-26 April 2019 to review ongoing and future Hydropower projects in Bhutan.

Secretary (West) visited Bhutan on 25-27 April 2019 to hold the first Plan Talks of the 12th Five Year Plan of the Royal Government of Bhutan (2018-23). Foreign secretary of Bhutan visited India on 28 November to 02 December 2019 for the 2nd Plan Talks of the 12^th FYP.

Development cooperation

India-Bhutan continued discussion through two rounds of Plan Talks in April 2019 and November 2019 for smooth disbursal of the GoI committed financial support of Rs. 4500 crores for the 12th Five Year Plan of Bhutan (2018-23). 72 big and intermediate projects worth Rs. 2556 crores approx in sectors including roads and bridges, construction of regional hospitals, schools, and covering sectors like ICT, capacity building, industries, agriculture, e-governance have been identified during the Plan Talks for implementation during the 12th FYP. Two rounds of Small Development Project Committee meetings were also held in April 2019 and October 2019 during which 359 High Impact Community Development Projects (HICDPs) worth Rs. 573 crores approx. in various sectors including community development projects like irrigation channels, farm roads, block connectivity roads, basic health units, etc. have been identified for implementation during the 12th FYP of Bhutan.

India is also assisting Bhutan in setting up of a Multi Disciplinary Super Specialty Hospital in Bhutan. An expert team led by AIIMS visited Bhutan on 7-9 August 2019 and submitted report to the Royal Government of Bhutan through Government of India. GoI is in the process of appointing a consultant for preparation of DPR of the project.

Hydropower Cooperation

Mutually beneficial hydropower cooperation reached another milestone with the inauguration of 720 MW Mangdechhu hydropower project during the visit of Prime Minister to Bhutan in August 2019. With this, the jointly developed hydropower capacity has crossed 2000 MW mark. Both Governments maintained close coordination to expedite implementation of two ongoing major projects – the 1200MW Punatsangchu-1 and the 1020MW Punatsangchu-2. Discussions continued for early signing of Concession Agreement and commencement of construction works for the 600 MW Kholongchhu joint venture hydropower project, and for finalizing implementation modalities of 2585 MW Sankosh reservoir based hydropower project.

Trade and Economic Cooperation

India continued to be Bhutan’s largest trading partner. In 2018, the bilateral trade reached around USD 1.5 billion. Both governments continued to engage and take measures to facilitate trade and mutual investments. Government of India released the first tranche of the transitional Trade Support Facility of Rs. 80 crore to promote trade and economic linkages between the two countries.

Bhutan has availed the facility of additional USD 100 million of currency swap under the Standby Swap Arrangement.

During the visit of Prime Minister to Bhutan in August 2019, Phase-I of the introduction of RuPay Cards i.e. use of Indian-issued RuPay cards in Bhutan, was formally launched by the two Prime Ministers. This would greatly facilitate Indian travellers to Bhutan by reducing the need to carry cash, while at the same time boosting the Bhutanese economy and further integrating the economies of both countries.

GoI has also increased the quantum of subsidized LPG to Bhutan from 700 MT to 1000 MT per month, to enable RGoB to meet the increasing domestic requirements and facilitate increased penetration of LPG in rural areas.

Culture and people to people ties

Vibrant people-to-people contacts continued to characterise the warm and friendly bilateral relations. As in past years, a large number of Bhutanese students benefited from GOI scholarships for study in Indian universities. A number of short-term technical courses were also organised for capacity-building of Bhutan Government officials. The Bhutanese public appreciated the gesture made during Prime Minister Modi’s visit of extending the period of loan of a statue of Dharma Raja or Zhabdrung (the founder of the modern state of Bhutan) by the Asiatic Society, Kolkata, by another five years.

During the year, 10 students from the Royal University of Bhutan visited India to witness the moon landing of Chandrayaan-II. These students also visited Industrial Facility (Hero Motors) and institutes of Science and Technology (Atal Tinkering Lab, TERI) apart from several famous cultural sites including Nalanda, Gaya and Rajgir.

During 2019-20, eight students under the NehruWangchuck Scholarship Scheme (for undergraduate, postgraduate and Ph.D. courses), and 75 students under Undergraduate Scholarships were benefitted. 20 training slots are offered by GoI under ITEC Programme. GoI also increased Nalanda University scholarships to 5 from current academic year onwards. In FY 2019- 20, a number of government officers from Bhutan are being trained in premier government training institutes including LBSNAA, FSI, NACEN and SVP-NPA. In addition, India has been deputing lecturers to various colleges affiliated to the Royal University of Bhutan.

Miscellaneous

Dasho Kunzang Wangdi, Member, Royal Research& Advisory Council, His Majesty’s Secretariat, Bhutan is to visit India under the Distinguished Visitors Programme from 24 December 2019 – 2 January 2020

A Media Delegation from Bhutan visited RIS on 19 November 2019 for an interactive session.

Two diplomats from Bhutan attended the six-month Induction Training Programme (ITP) along with IFS officer-trainees of the 2019 batch from 09 December 2019 to 24 July 2020.

B. Budget allocation to Bhutan under Technical and Economic Cooperation

C. Details of Incoming Visits by Heads of State / Heads of Government / Vice Presidents / Foreign Ministers and Equivalent to India in 2019-20

E. Details of Outgoing Visits by President / Vice President / Prime Minister / EAM in 2019-20

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