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Prime Minister’s Bhutan visit - offers economic help |
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Making his first-ever visit to Bhutan close on the heels of its transition to democracy, Prime Minister Manmohan Singh offered a package of economic assistance that includes building a railway line and doubling power generation from its hydel projects. Dr. Singh, who became the first international leader to visit Bhutan after it entered the club of democratic nations in March, met his Bhutanese counterpart, Jigme Thinley, and King Jigme Khesar Namgyal Wangchuk and made the offer. He also met his father, Jigme Singhe Wangchuk.
Dr. Singh ended his two-day visit to Bhutan on May 17 by addressing the first-ever joint sitting of the country’s newly-elected Parliament. Declaring himself to be “a friend and quite frankly, an admirer” of Bhutan, Dr Singh promised full support for the country’s process of planned development. He also formally announced India’s decision to begin construction of the first-ever rail link into the Himalayan kingdom from Hashimara in southern West Bengal to Phuntsholing in Bhutan. This link, to be called the “Golden Jubilee Rail Line” in commemoration of Jawaharlal Nehru’s first visit to Bhutan 50 years ago, will connect Bhutan to the entire railway network of India, the Prime Minister promised. He later dedicated the 1020 MW Tala hydro-electric plant, built entirely with Indian assistance, at a formal ceremony. He also laid the foundation stone for the Punatsangchu hydel project.
Briefing newsmen later, Foreign Secretary Shiv Shanker Menon said India is committed to building a railway line to Bhutan to improve its connectivity and to help the two economies to grow together. He said India has prepared a detailed project report of the rail link mentioned by Dr. Singh.
The Prime Minister instructed officials to double the target of hydro-electricity to be generated in Bhutan by 2020. The earlier target of 5000 MW is to be raised to 10,000 MW by that year as per the new instructions. Around 1400 MW is produced annually from the Chukka, Kurichhu and Tala hydroelectric projects, with Bhutan exporting the surplus generation to India.
A 1095 MW run-of-the-river project is already planned for Punatsangchu.
Speaking to reporters at the end of his visit, Dr. Singh said the quantum of Indian economic engagement with Bhutan over the next five years would be Rs. 10,000 crore. This would be in the form of both direct assistance to the country’s 10th Five Year Plan as well as for the development of mega projects in hydro-power structure.
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