India-Bhutan friendship

Diplomatic relations between India and Bhutan are over five decades old and the bilateral engagement between the two friendly neighbours is deepening through mutual cooperation in new and multiple sectors.
India-Bhutan friendship

Diplomatic relations between India and Bhutan are over five decades old and the bilateral engagement between the two friendly neighbours is deepening through mutual cooperation in new and multiple sectors. While hydropower has been a key sector, the collaboration between the two countries has also been expanded to non-traditional areas. The two neighbours collaborating on joint development of a small satellite for Bhutan has led to space as the new areas of bilateral engagement. It was during the visit of Prime Minister Narendra Modi to Bhutan in August 2019 that the two countries decided to undertake the collaborative project. The Indian Space Research Organization (ISRO) have completed phase-I training of Bhutanese officials at the ISRO headquarters in Bengaluru. The ISRO has proposed a budget of Rs. 21 crore for design, realization, launch and Ground Station realization and training of Bhutanese officials. A Joint Working Group has also been formed with members from ISRO and Indian Institute of Space Science and Technology (IIST), Department of Space, and Department of Information Technology and Telecommunication (DITT), Royal Government of Bhutan to implement the project. The Indian government made commitment of Rs 4,500 crore towards Bhutan's 12th Five Year Plan period from 2018 to 2023 which constitute 73 per cent of Bhutan's total external grants. The amount includes Rs. 2800 crore for project-tied assistance, Rs 850 crore for small development projects and Rs 850 crore for programme grant. Besides, India is also providing Rs 400 crore as transitional Trade Support Facility. Ministry of External Affairs data show that about 77 projects under Project tied Assistance and 524 under Small Development Projects are being implemented virtually covering all areas of socio-economic development, ranging from agriculture, infrastructure, Information and Communication Technology, health, education, capacity building and culture. Hydropower has been a major area of bilateral cooperation and the inauguration of the 720-megawatt (MW) Mangdecchu hydroelectric power project for which India released Rs 5012 crore was jointly inaugurated by the prime ministers of the two countries in 2019 during Modi's visit. India has also released Rs. 8045 crore for 1200 MW Punatsangchhu-I project and Rs 7050 crore for 1020 MW Punatsangchhu-II project. However, both the projects are delayed due to geological surprises not anticipated before. Preconstruction activities of 600 MW Kholongchu hydropower project are in progress and India has so far released Rs 173 crore. India and Bhutan reached agreement to share information on release of excess water from reservoirs of dams in the Himalayan kingdom, people in downstream areas in Assam are apprehensive as there is no clarity on cumulative impact of these dams built on trans-boundary rivers from Mountains in Bhutan into the plains in India. Removing such apprehension through dissemination of scientific and authentic information is in the best interest of strengthening bilateral cooperation between the two countries. There should be no room for spreading misinformation as it could adversely affect the friendly and strategic relations between the two neighbouring countries. Transparency on such projects and increasing people-to-people interaction between the two countries will be mutually beneficial. India and Bhutan signed the Treaty of Friendship in 1949 and revised in 2007. India is also the largest trading partner of Bhutan. Assam shares the longest stretch of 267 km of the total 699 km India-Bhutan border. The state is yet to benefit from the bilateral trade and 90 per cent of the cross-border trade between the two countries take place through West Bengal-Bhutan border. Assam needs to leverage the avenues under the Border Area Development Programme (BADP) of India to build critical infrastructure that can facilitate cross-border trade. The BDAP is a centrally-sponsored scheme, and the programme covers 396 Blocks of 111 border Districts in 16 States and two Union Territories. Maintaining peace in Bodoland Territorial Region the eastern border which forms part of the Assam-Bhutan border, is critical to generate confidence among people in Bhutan to revive traditional trade and commerce. The Bodo Peace Accord leading to return of cadres of all insurgent factions in BTR to the mainstream has created a conducive atmosphere and hope for lasting peace in the region. The BADP centrally covers all the census villages/ towns, semi-urban and urban areas located within 0-10 km distance from the first habitation from international boundary. The Indo-Bhutan Trade Centres at Darranga in Baksa district and at Hatisar in Chirang district have witnessed increasing cross-border trade and commerce activities but the quantum of trade has remained much below the potential. Boosting agricultural production, setting up food processing industries, grooming rural entrepreneurs, creating marketing infrastructure as part of BADP implementation will enhance the people-to-people engagement in cross-border trade and commerce between the two countries. The Assam government and BTR authorities are yet to fully explore potential benefits as stakeholders in bilateral engagement between India and Bhutan.

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