Lyonpo Khandu Wangchuk and Mr. P.M. Sayeed sign the MoU in the presence of His Majesty the King and the prime minister of India

New Delhi: 29 January 2005 - With the signing of three significant agreements in New Delhi on January 25, Bhutan and India took yet another major stride in bilateral cooperation, this time breaking new ground by initiating activities in the agriculture and livestock sectors as well as railway communications.

As President Dr. A.P.J. Abdul Kalam pointed out, these areas would represent “the heart of our cooperation”.

He suggested that they be regularly reviewed so that they produced “the desired results for the benefit of our two peoples”.

The three Memorandum of Understanding (MOU) were formally signed by cabinet ministers from the two countries in the presence of His Majesty the King and Prime Minister Dr. Manmohan Singh.

The Bhutanese foreign minister, Lyonpo Khandu Wangchuk, and India’s minister of agriculture & consumer affairs, food & public distribution, Mr. Sharad Pawar, signed the MOU on cooperation in agriculture and livestock. Officials of the two governments explained that it was aimed at providing a framework for institutionalised cooperation between the ministries of agriculture of the two countries in agriculture and animal sciences.

Activities will focus on the development and strengthening of marketing systems and human resources development with India offering training facilities for Bhutanese officials and professionals as well as assistance in research, extension, horticulture, agro-biodiversity, dairy and fishery, pest management, marketing, implements and machinery, crop production and exchange of experts, trainees, and farmers.

The funding, according to officials, will be channeled through the ministry of external affairs as project tied assistance as a part of the Five Year Plan activities. A budget of Rs. 661.06 million had already been approved for the agriculture and livestock sectors alone.

“This sector is taking us back to the basics,” said a spokesman for the agriculture ministry. “It is an area which will benefit the people directly and most people in both our countries are farmers. India has a lot of experience in agriculture and we will be happy to assist Bhutan in whatever way we can.”

Lyonpo Khandu Wangchuk signed the MOU for the preparation of detailed project reports for the 992MW Punatsangchu (Stage II) and the 670MW Mangdechhu hydro-electric projects with the minister for power, Mr. P. M. Sayeed.

With hydropower driving the Bhutanese economy and representing the key activities in the economic cooperation between the two countries the MOU was welcomed by officials of both governments. The minister for power, Mr. Sayeed, described the new developments in the power sector as a “win-win” situation that would benefit both countries. Bhutan would earn a steady revenue while India would benefit from the “cheap clean energy”.

The reports, to be conducted by Indian government agencies, are expected to take about two years and will also be funded through grants as project-tied assistance.

The third MOU, signed by Lyonpo Khandu Wangchuk and the minister of state for railways, Mr. Naranbhai J. Rathwa, is a feasibility study on a network of railway lines from five places in Bhutan to nearby connection points in India. The study will look at the possibility of laying broad gauge links from Hashimara to Phuentsholing, a distance of about 18 kilometres, 70km from Kokrajar to Gelephu, 40km from Pathshala to Nanglam, 60km from Rangia to Samdrup Jongkhar, and 16km from Banarhat to Samtse.

The chairman of India’s railway board, Mr. R.K. Singh, told Kuensel that the study would be taken up immediately and was expected to be completed within one year with the work done in a business-like manner. It would be funded as grant.

“The railway lines will connect Bhutan to all the ports and cities in India and, through Kolkota, to foreign ports,” he said. “I believe that it will work very well.”

The Bhutanese foreign minister, Lyonpo Khandu Wangchuk, said that, with the Tala project near completion and Chukha and Kurichu already generating power, the two new hydropower projects would take Bhutan closer to the national goal of attaining economic self-reliance. “The harnessing of our vast hydropower potential will bring great benefit to both our countries,” he said.

The foreign minister added that the railway links would facilitate the movement of goods and people between the two countries and would facilitate the expansion of Bhutan’s export and import relations with India. “India being Bhutan’s largest trading partner the rail connections will enhance our commercial relations,” he said.

With nearly 80 percent of the Bhutanese people engaged in agriculture and livestock activities for their livelihood the new level of cooperation in agriculture and livestock would bring prosperity to a large segment of the Bhutanese population, said Lyonpo Khandu Wangchuk. Bhutan would gain experience and expertise from India’s massive agrarian economy.

Speaking to the media in New Delhi, His Majesty the King said that the signing of the three agreements would have a positive impact on the Bhutanese economy and would go a long way in further strengthening the excellent and very close relations that Bhutan had with India.

By
Kinley Dorji in New Delhi
chief@kuensel.com.bt