India has agreed to positively consider providing Rs 1,500 crore to Bhutan under the Economic Stimulus Programme (ESP) over the next 18 months.
This development follows Foreign Secretary Vikram Misri's visit to Bhutan, his first foreign trip since assuming office last week.
During his visit, Misri engaged in extensive discussions with Bhutanese leadership, including an audience with King Jigme Khesar Namgyel Wangchuck, meetings with Prime Minister Dasho Tshering Tobgay, and Minister of Foreign Affairs and External Trade, D N Dhungyel.
The focus of these meetings was the review and enhancement of the India-Bhutan development partnership.
The joint press release issued at the end of Misri's visit highlighted the robust partnership between the two nations, characterized by trust, goodwill, and mutual understanding.
It highlighted the wide-ranging discussions on various aspects of bilateral cooperation, including development, energy, trade, investment, connectivity, technology, and regional issues of mutual interest.
"The Royal Government informed the Government of India of the activities proposed to be conducted under the Economic Stimulus Programme. The Indian side agreed to positively consider frontloading the full amount of Nu 15 billion, i.e., Rs 1,500 crore of ESP in the first one and half years, subject to progress on implementation of proposals," the release stated.
Misri and his Bhutanese counterpart, Aum Pema Choden, co-chaired the 3rd India-Bhutan Development Cooperation Talks – also known as ‘Plan Talks’ – of the 13th Five Year Plan. These talks focused on developmental cooperation and mutual interests, reflecting the deep ties between the two countries.
"Foreign Secretary @VikramMisri & Foreign Secretary Aum Pema Choden co-chaired 3rd Development Cooperation Talks of the 13th Five Year Plan," the Embassy of India in Thimphu posted on X.
"Reviewed implementation modalities & cooperation in diverse areas of development partnership under 13 FYP period," it added.
The talks also saw the virtual inauguration of 19 schools in Bhutan, constructed during the 12th Five Year Plan period. Both sides expressed satisfaction with the large number of development projects implemented under the previous plan and discussed new Project Tied Assistance (PTA) proposals for the 13th Five Year Plan.
A total of 61 projects amounting to Nu 49.58 billion (Rs 4,958 crore) were approved, covering sectors such as connectivity, infrastructure, energy, skill development, education, health, and cultural heritage.
The approval also extended to projects involving capacity building, industrial parks, sports, youth exchanges, digital economy, e-mobility, and space technology, aligning with the vision of the King of Bhutan and the priorities of the Bhutanese government and people.
This agreement follows the State Visit of Prime Minister Narendra Modi to Bhutan in March this year, during which he announced India's development support of Nu 100 billion (Rs 10,000 crore) for Bhutan's 13th Five Year Plan period.
The Bhutanese government conveyed its appreciation for India's continued invaluable support for the socio-economic development of Bhutan.
"During the Plan Talks, the two sides discussed various components of the assistance and implementation modalities for GoI-assisted development projects," the release added.
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