Embassy of India Thimphu,Bhutan

Bhutan in MEA Annual Report for the year 2005-06

2005-06

A. Excerpts from MEA Annual report wrt Bhutan

India and Bhutan share close and friendly relations based on mutual trust, understanding and goodwill. These relations were further strengthened in all areas during the course of the year.

Following upon his visit to India in January 2005, His Majesty the King of Bhutan, Jigme Singye Wangchuck visited India from 1-4 August 2005 during which he held wide ranging discussions with the Indian leadership. The visit contributed to further deepening of ties between the two countries.

Prime Minister Dr. Manmohan Singh had a bilateral meeting with Bhutanese Prime Minister Lyonpo Sangay Ngedup on the sidelines of the SAARC Summit in Dhaka 12-13 November 2005. The then External Affairs Minister Shri K. Natwar Singh visited Bhutan in October 2005, Minister of State for Urban Employment and Poverty Alleviation, Kumari Selja in June 2005, Minister of State for Parliamentary Affairs and Defence, Shri B. K. Handique in July 2005 and Minister of State for Environment and forests, Shri Namo Narain Meena in August 2005. The Chief Justice of India, Justice R.C. Lahoti visited Bhutan for the 8 th SAARC Chief Justices Conference in June 2005. From Bhutan, Minister for Trade and Industry, Lyonpo Yeshey Zimba and Deputy Minister for Environment, Dasho Nado Rinchen visited India in October/November 2005. (oreign Minister Lyonpo Khandu Wangchuk visited India and met Rao Inderjit Singh, Minister of State for External Affairs, and Foreign Secretary on 16 January 2006.

The talks on renewing the bilateral Trade, Commerce and Transit Agreement were concluded and it was agreed to renew Trade, Commerce and Transit Agreement for 10 years; an Umbrella Agreement on power projects in Bhutan was finalized during the visit of the Power Secretary in November 2005; an MoU on Air Services Agreement was signed during the Civil Aviation talks

providing for an increase in the flight frequencies from 12 to 49 per week; and an MoU between UPSC and Royal Civil Service Commission of Bhutan was signed to institutionalise cooperation between them.

The Bhutan-India foundation met in Thimphu in October 2005. There were also visits by delegations from Indo-Bhutan friendship Association and Antarashtriya Sahyog Parishad. Manipuri and Punjabi folk dance troupes gave performances in Bhutan. A photo-exhibition India-Bhutan: along the friendship Trail was organized at Delhi in December 2005. India continued to be the largest trade and development partner of Bhutan. Bilateral development cooperation encompassed projects in such varied areas as health, education, roads and bridges, power, trade & industry, civil aviation, culture, urban development and housing, judiciary, media, human resource development, IT and telecommunications. Projects agreed upon for implementation under Bhutan’s 9^th Plan progressed satisfactorily. Official level Talks to review India-Bhutan development cooperation were held in New Delhi on 12 & 13 January 2006. The hydro-power sector constituted an important area for cooperation between the two countries. The 1020 MW Tala Hydroelectric Project is expected to be commissioned by middle of 2006. The Detailed Project Report for the Punatsangchu-I Hydroelectric Project is expected to be ready in 2006, with the Punatsangchu II and Mangdechu Hydroelectric projects DPRs to be taken up, thereafter, within the 9^th Plan period.

The 3rd Bhutan-India Trade Show in May 2005 and the 2^nd Construction Expo in Thimphu in September 2005 witnessed participation by a large number of leading Indian companies.

Indian scholarships were granted to 50 Bhutanese students during the year to study in Indian institutions of higher learning. These scholarships were in addition to facilities extended under the ITEC/Technical Cooperation Scheme (TCS) of Colombo Plan Schemes. In addition, a large number of Bhutanese students study in schools and colleges in India.

Cooperation with Bhutan in the areas of security and border management was further strengthened at the Central level through the Joint Working Group and at India’s Neighbours Annual Report 2005 – 2006 State levels through coordination meetings with State officials. Arrangements were put in place for regular coordinated patrolling by security forces of the two

countries and timely exchange of information between the two governments.

B. Budget allocation to Bhutan