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India to help Bhutan develop core capabilities

India on Wednesday said it was committed to developing infrastructure within Bhutan, including roads...

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India on Wednesday said it was committed to developing infrastructure within Bhutan, including roads and a rail line from Hashimara to Phuentsoling. New Delhi has also decided to revitalise the standby credit facility for Bhutan, enhancing the amount to Rs 400 crore.

These were some of the agreed outcomes after Bhutan Prime Minister Jigmi Y Thinley met Prime Minister Manmohan Singh during his three-day visit, the first after the democratically elected government came into being in Bhutan.

The Ministry of External Affairs said India had exempted Bhutan from the ban on export of essential commodities. India also agreed to positively consider Bhutan’s request for removal of export duty on the supply of industrial raw material, including coal and steel billets, to Bhutan.

New Delhi reiterated its commitment to assist Bhutan in its socio-economic development programmes and reaffirmed its full support to Bhutan’s 10th Five Year Plan. It has committed to double its 10th Five-Year Plan assistance over the revised outlay assistance in the 9th Plan period.

Bhutan’s new plans would include the establishment of a medical college and capacity-building in health sector, education, rural development and agriculture. India said it was committed to develop 10,000 MW of hydropower in Bhutan for export to India by 2020.

Thinley called on President Pratibha Patil and Vice-President Hamid Ansari and met UPA Chairperson Sonia Gandhi, Leader of Opposition L K Advani, External Affairs Minister Pranab Mukherjee, Home Minister Shivraj Patil, Power Minister Sushilkumar Shinde, Health Minister Anbumani Ramadoss, Tourism Minister Ambika Soni and Planning Commission’s Deputy Chairman Montek Singh Ahluwalia. He also met National Security Advisor M K Narayanan and Foreign Secretary Shiv Shankar Menon.

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