Bhutan on Wednesday appreciated India for extending standby credit facility at lower interest rate and extended settlement period and providing additional currency swap support of USD 200 million, according to an India-Bhutan joint statement issued by the ministry. of foreign affairs. India also agreed to positively consider Bhutan’s request for extension of Additional Standby Credit Facility (SCF) for a period of five years.

Bhutan also expressed satisfaction at the timely flow of funds from the Government of India (GoI) to ensure smooth and uninterrupted progress of projects under the 12th Five Year Plan, with about 90 per cent of India’s committed plan assistance to Bhutan already released Has gone To take this exemplary development partnership forward, India agreed to extend support to Bhutan’s 13th Five Year Plan, which Bhutan welcomed, the joint statement said.

Both sides reviewed various elements of bilateral hydropower cooperation and expressed satisfaction that a total of 2136 MW of jointly established projects are functioning well. The two sides also welcomed the recent handing over of the 720 MW Mangdechhu HEP to Bhutan, the statement said. Hydropower cooperation has been a cornerstone of the India-Bhutan bilateral economic partnership. This has been a productive arrangement for both countries, with Bhutan receiving a steady stream of revenue from the sale of power from jointly developed hydroelectric plants, and India benefiting from an assured supply of energy. In this context, the role of hydropower projects in helping the Bhutanese economy during the global economic downturn due to COVID-19 was noted.

On the periodic revision of tariff of Chhukha HEP, the Bhutanese side welcomed India’s proposal to revise the tariff by Rs 3 per unit, which represents an increase of 17 per cent over the earlier tariff. Bhutan thanked India for enabling import of electricity from India to meet Bhutan’s energy deficit during the winter months. India agreed to positively consider Bhutan’s request for sale of power from the 64 MW Basochu HEP in the Indian Energy Exchange. Both sides also reiterated the importance of cooperation in the hydropower sector and the urgent need to review and finalize modalities for new projects, including the Sankosh HEP. India assured consideration of Bhutan’s request for financing and market access for sale of power for new and upcoming hydroelectric projects in Bhutan. It was also agreed to expand India-Bhutan energy partnership in the area of green initiatives for e-mobility as well as non-hydro renewables such as solar and wind. India assured necessary technical and financial assistance for projects in these areas. On the proposed trilateral hydropower cooperation between Bhutan, Bangladesh and India, both sides expressed their commitment to greater sub-regional cooperation, including in the energy sector, which would enhance inter-linkages between the economies for the mutual benefit of all stakeholders. statement. Both sides welcomed the growing strength of bilateral trade and economic relations. To further expand bilateral cooperation on trade, technology, cross-border connectivity and mutual investment, it was agreed to: work on long-term sustainable arrangements for export of agricultural commodities; Explore long-term bilateral arrangements for assured supply of vital commodities such as petroleum, fertilizers and coal to Bhutan; to consider setting up the first Integrated Check Post on the Indo-Bhutan border near Jaigaon and Phuntsholing; to take forward the project on the proposed cross-border rail link connecting Kokrajhar in Assam to Gelephu in Bhutan; Expediting the operationalization of the third International Internet Gateway for Bhutan; The statement added to further develop inland waterways connectivity and work towards opening additional foreign check posts between Bhutan and Assam to facilitate entry and exit of third country nationals by land route between India and Bhutan. In the context of new areas of partnership, which now include startups, space and STEM education, the two sides welcomed the extraordinary progress made in cooperation in the space sector, including the recent launch of the first satellite jointly developed by India and Bhutan and The launch of the satellite is included. Ground Earth Station in Thimphu. Bhutanese King Jigme Khesar Namgyel Wangchuck paid an official visit to India from April 3 to 5 at the invitation of President Draupadi Murmu. During his visit, he held talks with Prime Minister Narendra Modi. The King of Bhutan and Prime Minister Modi discussed all aspects of bilateral cooperation and regional and global issues of mutual interest. Both the leaders expressed satisfaction at the way India and Bhutan are helping each other in the fight against the COVID pandemic. They said they agreed to work together for progress and development in the region as the economy recovers from the pandemic. PM Modi reaffirmed India’s deep commitment to the unique ties of friendship and cooperation with Bhutan and reiterated continued and full support for socio-economic development in Bhutan.

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