GoI grants Nu 1.2billion to aid development projects in Bhutan

Pasakha Dry Port

STAFF REPORTER

Thimphu

The Government of India has released Nu 1,225 million (m) for various Development Projects of Bhutan, being undertaken through Government of India’s (GoI’s) Trade Support Facility (TSF) and the Program Grant (PG) on 11 August.

The press release from the Indian embassy states that for the 12th Five Year Plan (FYP) of Bhutan, the government of India has committed Nu 8.5 billion (B) as untied Program Grant to the Royal Government of Bhutan (RGoB).

In addition, India has also committed Nu 4-B as Transitional Trade Support Facility for the 12th Plan Period. To upgrade the trade infrastructure of Bhutan, improve Ease of Doing Business and strengthen bilateral economic linkages, an amount of Nu 800-m has been provided in this tranche.

Under this facility, the Pasakha Dry Port is being constructed while feasibility studies of the Nganglam and Gelephu Dry Ports are being undertaken. The Bhutan Integrated Taxation System, one of the components of the flagship Digital Drukyul, is being implemented.

Further, it also states that to facilitate the RGoB in implementing its development agenda, an amount of Nu 425-m has been provided out of the present release as PG.

The PG facility is an untied grant in the form of direct budgetary support to the finances of the royal government.

As a special gesture, India has also authorised the export of wheat and sugar to Bhutan, as per Bhutan’s requirements, that is 5, 000 MT of wheat and 10,000 MT of sugar, to be imported by the Food Corporation of Bhutan Limited and other leading industries in Bhutan.

The press release stated: “Our close trade and economic ties are a reflection of the exceptionally close and friendly relations between India and Bhutan that have existed over decades.”

In view of this special relationship, notwithstanding global supply chain disruptions and shortages of various commodities, India has decided to accommodate Bhutan’s special requests.

“Going forward, the people and the GoI are resolute in their commitment to the equitable, inclusive, and sustainable development of Bhutan in consonance with the principles of Gross National Happiness,” it said.