Embassy of IndiaThimphu

2009-10

A. Excerpts from MEA Annual report wrt Bhutan

India and Bhutan enjoy close and friendly relationship that is based on trust, understanding, mutual benefit and well-being. During the year, there were several high-level visits from both sides. Bilateral interaction encompasses the areas of hydro-power, transport, communications, infrastructure, health, education, IT, industry, medicine and agriculture.

High-level visits from Bhutan include the visit of Prime Minister of Bhutan Mr. Lyonchen Jigmi Y. Thinley to India in June-July 2009. High-level visits from India to Bhutan include visits by External Affairs Minister Shri S. M. Krishna (June 2009), Home Minister Shri P. Chidambaram (August 2009), Minister of Parliamentary Affairs & Water Resources Shri Pawan Kumar Bansal (October 2009), Chief Information Commissioner Shri Wajahat Habibullah (May 2009), the Special Envoy of the Prime Minister, Shri Shyam Saran (July 2009), Foreign Secretary, Smt. Nirupama Rao (September 2009), the Comptroller & Auditor general, Shri Vinod Rai (September 2009) and Chief Election Commissioner, Shri Navin Chawla (October 2009).

The Prime Minister of the Royal Government of Bhutan (RGoB) Lyonchen Jigmi Y. Thinley visited India from 28 June-3 July 2009. Bilateral discussions during the visit covered various facets of Indo-Bhutan relations and measures to further enhance the relationship. Regional and international issues and the forthcoming 16th SAARC Summit in Thimphu in April 2010 were also discussed. While expressing sympathy for the loss of lives and property from the flash floods in Bhutan, the Prime Minister of India, Dr. Manmohan Singh, as a gesture of solidarity, extended assistance worth Rs. 10 crores to the victims of the flash floods.

On the invitation of the President of India, the King of Bhutan Jigme Khesar Namgyel Wangchuck, paid a State Visit to India from 21-26 December, 2009. The King of Bhutan was accompanied by Mr. Ugyen Tshering, Foreign Minister, Mr. Khandu Wangchuk, Minister of Economic Affairs, and other officials of the Royal Government. This was the first State Visit of the King of Bhutan to a foreign country since his formal coronation in November 2008.

While in India, the King of Bhutan met with the President of India. The Vice President of India, the Prime Minister, the Chairperson of the UPA, the Finance Minister, the External Affairs Minister, the Home Minister, the Leader of the Opposition, the National Security Advisor and the Foreign Secretary called on him. All the meetings were very friendly, warm and cordial, reflecting the spirit of trust, cooperation and deep understanding that mark the bilateral relations between India and Bhutan. Discussions covered issues of mutual interest, bilateral cooperation, including cooperation in the hydropower sector, IT, health, civil aviation etc. and regional and multilateral issues.

Twelve Agreements/MoUs were signed between the two countries during the visit. Our Prime Minister committed Government of India assistance of Rs. 25 crores for the victims of the September 2009 earthquake in Bhutan. During the visit, the King of Bhutan inaugurated a photo exhibition – “Bhutan: An Eye to History” – profiling Indo-Bhutan relations at the National Gallery of Modern Arts and delivered the Madhavrao Scindia Memorial Lecture on “Changing Times and Timeless Values”.

The Minister of Foreign Affairs of the Royal Government of Bhutan, Lyonpo Ugyen Tshering, visited Kolkata on 17 December, 2009, to inaugurate the Royal Bhutan Consulate in Kolkata along with the Governor of West Bengal coinciding with the 102nd National Day of Bhutan.

The Minister of Economic Affairs of the Royal Government of Bhutan, Lyonpo Khandu Wangchuk, visited India from 4-8 January, 2010 for the Seventh Meeting of the Punatsangchhu-I Hydropower Authority. The Implementation Agreements of two new hydropower projects in Bhutan – Mangdechhu and Punatsangchhu were finalized during the visit.

External Affairs Minister of India Shri S. M. Krishna, visited Bhutan from 18-19 June, 2009. This was his first official visit abroad after assuming office. During the visit, EAM had extensive exchange of views with the Bhutanese leadership and with his Bhutanese counterpart, jointly inaugurated the Paro-Bagdogra Druk Air flight and launched the Nehru-Wangchuck Scholarship Programme.

Home Minister Shri P. Chidambaram visited Bhutan from 21-24 August, 2009. During his visit, issues related to mutual security concerns were discussed.

The Special Envoy of the Prime Minister of India on Climate Change, Shri Shyam Saran, visited Bhutan from 27-31 July, 2009, during which he discussed the possible agenda and activities for the forthcoming SAARC Summit in Bhutan, which has Climate Change as its central theme.

Foreign Secretary Smt. Nirupama Rao, visited Bhutan from 12-14 September, 2009. This was her first visit abroad 7 India’s Neighbours since assuming charge as Foreign Secretary. She had wide ranging discussions on issues of mutual interest.

Shri Pawan Kumar Bansal, Minister of Parliamentary Affairs and Water Resources, attended the International Conference on ‘Deepening and Sustaining Democracy in Asia’ in October 2009, Chief Election Commissioner, Shri Navin Chawla, visited Bhutan in October 2009, Comptroller and Auditor General, Shri Vinod Rai, visited Bhutan in September 2009, Chief Information Commissioner Shri Wajahat Habibullah, visited Bhutan in May 2009 and the National Security Advisor to Prime Minister Shri M. K. Narayanan, visited Bhutan in November 2009.

The biannual Indo-Bhutan Joint Working Group on Border Security and Management meeting was held from 8-9 September, 2009 in Thimphu. Secretary (Border Management), Government of India, led the Indian delegation.

India continues to be the largest trade and development partner of Bhutan. The Government of India committed assistance worth Rs. 3400 crores during the 10th Five Year Plan (FYP). This includes Project tied Assistance (Rs. 2000 crore for 65 projects in key socio-economic sectors), Programme Grant (Rs 700 crore) and the Small Development Projects (Rs 700 crore). Some of the important projects being executed under the 10th Plan include construction of Supreme Court building, strengthening of Constitutional Offices such as Royal Audit Authority, Election Commission, Anti-Corruption Commission and Attorney General, renovation of major Dzongs, preparation of DPRs for major power projects, widening of major roads, E-governance, scholarships and expansion of tertiary educational institutions.

The Government of India has agreed to provide assistance to Bhutan in developing the hydropower sector and to purchase at least 10,000 MW of power from Bhutan by 2020. For this purpose, ten hydropower projects have been identified by the two countries.

India provided technical expertise and services of specialists to Bhutan in various fields as well as scholarships and capacity development to a number of Bhutanese students and officials. Under the 10th Plan, the undergraduate slots have been increased to 85 per year and postgraduate to 77.

B. Budget allocation to Bhutan

C. Details of Incoming Visits by Heads of State / Heads of Government / Vice Presidents / Foreign Ministers and Equivalent to India in 2009