Embassy of IndiaThimphu

2008-09

A. Excerpts from MEA Annual report wrt Bhutan

India and Bhutan continue to share uniquely warm and cordial relations characterized by close consultations, maturity, complete trust and mutual understanding. These relations were further deepened during the course of the year that coincided with the Golden Jubilee of the visit of Pandit Jawaharlal Nehru to Bhutan in 1958, Coronation of the Fifth King of Bhutan and the 100th Anniversary of the Wangchuck dynasty. In keeping with the tradition of regular visits and exchange of views at the highest levels between the two countries, there were high level visits that led to consolidation of our economic and political relations.

President, Smt. Pratibhadevi Singh Patil accompanied by the External Affairs Minister, Shri Pranab Mukherjee and Chairperson of UPA, Smt. Sonia Gandhi paid a State visit to Bhutan from 5-8 November, 2008 on the invitation of the Royal Government of Bhutan to attend the formal coronation of His Majesty Jigme Khesar Namgyel Wangchuck, the King of Bhutan. Government of India sponsored various live musical shows, football matches etc. as part of the celebrations for the Coronation ceremony of the King of Bhutan.

Prime Minister, Dr. Manmohan Singh visited Bhutan from 16-17 May, 2008 as the first foreign dignitary to visit Bhutan after it became a Democratic Constitutional Monarchy in April 2008, he called on the King of Bhutan and the former King besides having productive discussions with regard to intensifying bilateral cooperation especially in the hydropower sector. Besides formally inaugurating the Tala Hydroelectric Project and laying the foundation stone of the Punatsangchhu-I Hydroelectric Project, PM announced the revision of the target of exporting hydropower from Bhutan to India from 5,000 MW (as per the Agreement of 2006) to 10,000 MW by 2020. He also announced the GoI’s economic assistance package of Rs. 10,000 crores for the next five years to be used both as GoI’s assistance to Bhutan’s Tenth Five Year Plan as also for development of mega projects for hydropower and infrastructure. PM also committed the GoI’s assistance towards construction of the first rail link between India and Bhutan – the Golden Jubilee Rail Line connecting Hashimara in India to Phuentsholing in Bhutan, the establishment of the prestigious Nehru-Wangchuck scholarship for meritorious Bhutanese students to study in reputed educational institutions in India and the establishment of a Medical College in Thimphu.

Minister of Power, Shri Sushil Kumar Shinde, led a delegation of officials from the Indian PSUs involved in the hydropower projects in Bhutan to Thimphu from 4-7 December, 2008 on the invitation of the Minister of Economic Affairs of Bhutan. Foreign Secretary subsequently visited Bhutan from 14-15 February, 2009 and discussed a wide gamut of bilateral issues especially those relating to development assistance and hydropower cooperation between the two countries.

The Prime Minister of Bhutan, Lyonchen Jigmi Y. Thinley, paid a State visit to India from 14-17 July, 2008 after his election as the first democratically elected Prime Minister of Bhutan. Prime Minister Thinley again visited India from 12-14 November, 2008 to participate in the Second BIMSTEC Summit in New Delhi. A delegation led by the Speaker of the National Assembly of Bhutan, Lyonpo Jigme Tshultim, also visited India from 25 August to 5 September, 2008 while the Bhutanese Minister of Health, Lyonpo Zangley Dukpa, visited India from 11-18 September, 2008 to strengthen bilateral cooperation between the two countries in the health sector. The Attorney General of Bhutan subsequently visited India from 15-21 December, 2008 for a study tour.

India continued to be the largest trade and development partner of Bhutan. The implementation of the India assisted projects agreed under Bhutan’s Ninth Plan progressed satisfactorily. Some of the important ones that were completed include Semtokha Dzong, Thimphu and Mongar Regional Referral Hospitals, Youth Centre, RENEW Centre and Exhibition Hall for the National Museum. The two Governments also agreed various projects under the GoI assistance for the Tenth Plan of Bhutan. GoI agreed to double its assistance to Bhutan under the Tenth Plan over the Ninth Plan to Rs 3400 crores. Government of India also signed an MoU with Royal Government of Bhutan in March 2009 for grant of Rs. 300 crores Standby Credit Facility to Royal Government of Bhutan to assist the latter meet its Rupee liquidity shortages. Cooperation in Security and Border Management continued between the State Governments of Assam and West Bengal and the Royal Government of Bhutan. India remained committed to providing assistance to Bhutan during its transition to a Democratic Constitutional Monarchy.

The First Meeting of the Empowered Joint Group on Hydropower Development in Bhutan was held in New Delhi on 17 March, 2009 to discuss issues relating to development of 10,000 MW of hydropower in Bhutan for export to India by 2020 as per the commitment given by our Prime Minister to Bhutan during his last visit to the country in May 2008. The Protocol to the 2006 Agreement Annual Report 2008-2009 6 on Hydropower Cooperation between India and Bhutan to formalize the aforesaid commitment of GoI was signed between the two sides in New Delhi on 16 March, 2009.

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 2008

D. Details of Outgoing Visits by President / Vice President / Prime Minister / EAM in 2008