Background, Positives, Recent Happenings, Economic and Development Cooperation

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Background

  • Diplomatic relations established in 1968

  • 1949: Treaty of Friendship and Cooperation

    • Basic framework of the India-Bhutan bilateral relations

Positives

Bilateral relations characterized by close trust and understanding and extensive cooperation in the field of economic development, particularly in the mutually beneficial sector of hydroelectric power

Recent Happenings

  • Treaty of friendship was updated and signed during the visit of King Jigme Namgyel Wangchuk in 2007

    • The updated treaty lays the foundation for the future development of relationship in 21st century

    • Provides, among other things, for perpetual peace and friendship, free trade and commerce, and equal justice to each other’s citizens

  • Some agreements were signed in 2009 during the King’s visit

    • MoUs for preparation/updation of detailed project reports

    • For Development of ICT in Bhutan

    • Establishment of the Bhutan institute of Medical Sciences

    • Prevention of Illicit Trafficking in Narcotic Drugs

    • Air Services Agreement

    • For harmonisation of Seed Quality Testing and Standards for SAARC countries

    • Agreement for Search and Rescue Operation Services

    • Technical Assistance to the National Environment Commission of RGoB

    • For consultancy services for the prep of the National Transmission Grid Master Plan 7of Bhutan

Economic and Development Cooperation

  • India is the largest trade and development partner of Bhutan

  • India has been extending financial assistance to Bhutan’s FYPs (first plan in 1961)

  • Some major projects carried out with Indian assistance

  • Tala HEP

  • Chukha HEP

  • W Kurichhu HEP

    • Penden Cement Plant

    • Paro Airport

    • Bhutan Broadcasting Station

    • Major Highways

    • Electricity Transmission and Distribution System

    • Indo-Bhutan Microwave Link

    • Exploration of Mineral Resources

    • Survey and Mapping

  • GoI also provides support to Bhutan to develop various ‘mega projects’

    • Tala HEP

  • India to purchase at least 10000 MW of power from Bhutan by 2020

  • Ongoing Hydroelectric power projects

    • Amochhu Reservoir HEP

    • Kuri Gongri HEP

    • Chamkharchhu HEP

    • Kholongchhu HEP

    • Punatsangchhu –II

    • Mangdechhu HEP

  • GoI has also committed to establish a 1 million tonne cement project, Dungsum Cement Plant at Nganglam

  • First ever rail link between India Bhutan announced by PM MMS

  • Connectign Hashimara to Phuentsholing

  • Golden Jubilee Rail Line

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