INDIA BHUTAN AGREEMENT TO EXPAND CONNECTIVITY & TRADE

Why in the news?

Recently, during Bhutan's King visit, both countries agreed to discuss new routes of Regional Connectivity, and upgrade border and immigration posts, in order to enhance trade and Partnership.

Key highlights of the King’s Visit

1. Regional Connectivity:
   1. Both acknowledged the final location survey for the proposed cross-border rail link connecting

Kokrajhar in Assam to Gelephu in Bhutan.

1. 2. Agreed to consider establishing a rail link of approximately 18 km between Samtse in Bhutan and Banarhat in the tea gardens area of West Bengal.
2. Trade and Connectivity:
   1. Decided to designate Haldibari (West Bengal) to Chilahati (Bangladesh) rail route as an additional trade route for Bhutan's trade with Bangladesh.
      1. Aiming to enhance trade opportunities and ease the movement of goods between Bhutan and Bangladesh through Indian territory.
3. Immigration Check Post:
   1. The Darranga-Samdrup Jongkhar border crossing between Assam and Bhutan's SouthEastern district will be designated as an immigration check post.
      1. This is to facilitate the entry and exit of third country nationals by land route for enhancing connectivity, and promoting tourism.
4. Support for Bhutanese SEZ Project:
   1. By upgradation of an existing land customs station at Dadgiri (Assam) to a modernised “Integrated Check Post” (ICP) along with “development of facilities on the Bhutanese side at Gelephu”, indicating India’s support to the Bhutanese SEZ project.
5. Development Assistance:
   1. India has committed to continue its support for Bhutan's socio-economic development, with a particular focus on the 13th Five-Year Plan.
   2. For the 12th Five Year Plan, India’s contribution of Rs 4,500 crore constituted 73% of Bhutan’s total external grant component.
6. Lauds India’s Support for Global South:
   1. Bhutan commended India’s dedication to integrating the interests and priorities of Global South countries in G20 deliberations.
   2. Also, praised India for fostering consensus and constructive decisions outlined in the Delhi Declaration.
7. India-Bhutan Energy Partnership:
   1. Progress on the construction of the 1020 MW Punatsangchhu-II hydropower project was acknowledged, with its early commissioning expected in 2024.
   2. An agreement was reached to expand the existing India-Bhutan energy Partnership from hydro to non-hydro renewables, including solar energy, as well as green initiatives related to hydrogen and e-mobility.
   3. India assured essential technical and financial support for projects in these areas.
8. Recalling Operation All Clear:
   1. Bhutan King recalled Operation All Clear which was a military operation conducted by the Royal Bhutan Army in 2003 against Assam separatist insurgent groups in the southern regions of Bhutan.
9. Other Announcements
   1. Both the leaders decided to
      1. Safeguard the ecological diversity of the region,
      2. Allocate additional MBBS seats for Bhutanese students in medical colleges in Assam,
      3. Double the outlay under Ambassador’s scholarship for Bhutanese students pursuing higher education in India.

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