Ministry of External AffairsNorthern Division

India- Bhutan bilateral relations

BHUTANSTRATEGIC IMPORTANCE

• Bhutan shares about 699 Km of boundary with four Indian states (West Bengal, Assam, Arunachal Pradesh and Sikkim)

• Bhutan shares about 470 km of boundary with Tibet Autonomous Region of China

• Landlocked country • Geographical area: 38, 394 sq.km • Population: 650,000• Total arable land: 2.3% of total geographical area

India- Bhutan- China boundary

Diplomatic relations with India• ‘Treaty of Peace and Friendship between GOI and the Government of

Bhutan’ signed on 8 August 1949.• Article 2 of the 1949 Treaty: The GOI undertakes to exercise no

interference in the internal administration of Bhutan. On its part the Govt of Bhutan agrees to be guided by the advice of the GOI in regard to its external relations.

• India- Bhutan Friendship Treaty of 2007- Reflects the matured nature of bilateral relations.

• Article 2 of the 2007 Treaty: In keeping with the abiding ties of close friendship and cooperation between Bhutan and India, the Govt of the Kingdom of Bhutan and the Govt of the Republic of India shall cooperate closely with each other on issues relating to their national interests. Neither Governments shall allow the use of its territory for activities harmful to the national security and interest of the other.

India- Bhutan diplomatic relations

• Friendly, unique and special relations• Win-win partnership• Model of bilateral relations reflecting the excellent

cooperation• Close cooperation of our foreign and security policies• Common and indivisible security• Open border and equal treatment to Bhutanese

citizens

Diplomatic exchanges in 2014• His Majesty the King and Her Majesty the Queen of Bhutan

visited India in 2014 and stayed as the first foreign guests in renovated guest house of Rashtrapati Bhawan.

• Bhutan PM Tshering Tobgay visited India as a guest in the swearing in ceremony of new government led by PM Modi in May 2014. He was accompanied by Foreign Minister Rinzin Dorje and Foreign Secretary.

• PM Modi visited Bhutan in June 2014 on his first visit abroad.• President visited Bhutan after a period of 26 years in

November 2014.• 2014 is the year of consolidation of friendship between India

and Bhutan.

Parliamentary exchanges

• A 14 member delegation of National Council of Bhutan led by Chairperson Dr. Sonam Kinga visited India from 24 July to 1 August 2013.

• A 12 member delegation of National Assembly of Bhutan led by Speaker Jigme Zangpo visited India from 15-17 January 2014.

• A 13 member delegation of Bhutanese Parliamentarians & Political leaders are in India from 13-20 December 2014. The multi party delegation is first of its kind from Bhutan to visit India.

India- Bhutan Developmental Cooperation

• India is the major developmental partner of Bhutan.

• Plays a decisive role in the modernization of Bhutan through technical and financial assistance since the first FYP of RGOB in 1961.

• India’s assistance to various sectors like hydropower, education, infrastructure, health, culture, HRD, ICT, industries, civil aviation and sports etc.

An overview of GOI’s assistance to the FYPs of RGOB

Year/Plan Total allocation(Rs crores)

India’s contribution(including to the plan,

subsidies, refunds/projects

outside of the plan(Rs crores)

% of India’s contribution to total allocation

1961-66/ I 10.72 10.72 100

1966-71/ II 20.22 20.22 100

1971-76/III 47.52 42.66 90

1976-81/ IV 110.62 85.3 77

1981-87/ V 444.05 134 30.2

1987-92/ VI 950 400 42.1

1992-97/ VII 2350 750 31.9

1997-2002/VIII 4000 1050 26

2002-2008/IX 8900 2610.14 29.3

2008-13/X 15265.7 5392.27 35.3

2013-18/XI 21396.6 7150 33.429

GOI’s assistance to the XI FYP of RGOB (2013-18)

• Rs.7150 cr of GOI’s assistance out of the XI FYP outlay of Rs. 21,396.6 cr

• Programme Grant/Direct Budgetary Support- Rs. 850 cr (Poverty alleviation &social assistance programmes)

• Project Tied Assistance- Rs.2800 cr (Education, roads and bridges, health, culture, scholarships etc)

• SDPs- Rs.850 cr – Farm roads, irrigation channels, Infrastructural developmental activities up to Rs.5 cr at the Geowag level.

• Economic Stimulus Package- Rs.500 cr- Providing liquidity to financial institutions and support to small and medium scale enterprises

• Subsidies and refunds- Rs.2150 cr

Cooperation in Hydropower Sector• Estimated hydropower potential of Bhutan: 30, 000 MW• Three HEPs built with 100% GOI’s assistance: Chukha (336 MW), Kurichhu

(60 MW) and Tala (1020 MW)• In 2012, RGOB earned revenue of about Rs.1000 cr by exporting power

to India, i.e., 1/3 rd of Bhutan’s total exports and 11.4% of Bhutan’s GDP• India imports electricity at a price of around Rs.2/ unit• In 2008, GOI agreed to develop 10, 000 MW of hydropower capacity in

Bhutan.• At present, Punatsangchhu-1 (1200 MW), Punatsangchhu-2 (1020 MW)

and Mangdechhu (720 MW) are being constructed. • 4 JV projects: Kholongchhu (600 MW), Bunakha (180 MW), Wangchhu

(570 MW) and Chamkharchhu-1 (770 MW)• Joint Venture cum Share holder Agreement was signed by the JV partners

i.e., SJNVL, Indian PSU and DGPC, Bhutanese PSU, on 30 September 2014 in Thimphu.

• PM, during his visit to Bhutan in June 2014, laid the Foundation Stone of Kholongchhu HEP.

• Construction of the project is expected to start in the CFY.

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Amochhu HEP,(540 MW)

Bunakha HEP,(180 MW)

Punatsangchhu-1 HEP,(1200 MW)Punatsangchhu-2 HEP,(1020 MW)

Wangchhu HEP,(600 MW)

Sankosh HEP,(2560 MW)Kuri Gongri HEP,(2740 MW)

Mangdechhu HEP,(720 MW)Chamkharchhu HEP,(770 MW)

Hydropower Development in Bhutan

T

Kholongchhu HEP,(600 MW)

Kurichhu HEP ( 60 MW) in OperationChukha HEP (336 MW) in Operation

Tala HEP (1020 MW) in operation

INDIA

Development of 6476 MW Hydropower by 2021-22Hydropower Potential of Bhutan is 30000 MW, Feasible is 23760 MW

UNDER OPERATION- 1416 MWUNDER CONSTRUCTION- 2940 MW

JV HEPs-2120 MW

GOI’s assistance to the HRD of Bhutan• GOI’s scholarships to Bhutanese students:(in addition to the training/skills improvement programmes offered to parliamentarians,

teachers, technical specialists, journalists and to the armed forces )

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Name of the Scholarship Total no. of slots

PG Scholarships 385

UG scholarships 425

Nehur- Wangchuck Scholarship (started in 2010)

35 (since its inception)

Ambassador’s Scholarship(started in 2001)

668

Sainik School Scholarships (From 6-10 th Class)

10 /year

Bhutan- ICCR scholarships (started in 2012-13) 39 (since its inception)

SAARC scholarships by ICCR 2/year

ITEC/TCS Colombo Plan 260

GOI assistance to the HRD of Bhutan

• Assistance during the XI FYP of Bhutan:- Rs.535.31 cr to education sector, out of which

Rs.348.72 cr to the School Reforms Programme, Rs.55 cr to the Undergraduate Scholarship and Rs.91.86 cr to Royal University of Bhutan.

GOI’s assistance to the HRD of Bhutan

• Assistance offered during the visit of PM to Bhutan in June 2014:- Doubling of Nehru- Wangchuck Scholarship to Rs.2 cr/annum.- Establishment of e-library in the National Library of Bhutan and all the 20

Dzongkhags.- Establishment of video conferencing facility between the think tanks of India and

Bhutan.- Ayurveda seats in Gujarat Ayurved University, Jamnagar to Bhutanese students.• Assistance offered during the visit of President to Bhutan in November 2014:- Doubling of Ambassador’s Scholarship to Rs.2 cr/annum.- Bhutan signed the MoU on establishment of Nalanda University and became the

second country to do so outside the EAS process.- Signing of the following three MoUs on bilateral cooperation in the field of

education: a) Between Royal University of Bhutan and the English and Foreign Languages

University, Hyderabadb) Between Royal University of Bhutan and the National Innovation Foundation of

Indiac) Between Royal Civil Services Commission and the Indian Institute of

Management, Ahmedabad

Security concerns near India- Bhutan boundary

• Indian Insurgent Groups (IIGs)NDFB (S),ULFA and KLORGOB’s ‘ Operation All Clear’ in 2003Extortion and kidnapping activities by IIGsGuarding of India- Bhutan boundary: SSB &

RBA

Thank You&

Best Wishes