Rs 4,587 cr aid for Bhutan

Fri, May 9 01:05 AM

ON THE eve of Prime Minister Manmohan Singh's visit to Bhutan, the Union Cabinet on Friday is set to approve a sum of Rs 4,587 crores as assistance for Bhutan's Tenth Five Year Plan. India, which completely financed the country's first two five-year plans (from 1961) will provide the sum from the non-plan budget of the External Affairs Ministry under the "aid to Bhutan" head.

Bhutan's 10th five-year plan will commence in July. Spelling out India's policy on Bhutan, an internal document states that India's policy comprises two aspects: accommodation of Bhutan's legitimate aspirations as an independent country, while taking into account India's vital, strategic interests and integration of both economies, particularly in areas such as hudroelectricity.

This is to facilitate permanent bonds of interdependence and sustain bilateral relations on an even keel. At a time when Bhutan is opening up to the rest of the world, including applying for membership of the World Trade Organisation, Indian assistance is the only way to ensure its strategic interests are met.

India's assistance is to demonstrate support to the new monarch Jigme Khesar Namgyal Wangchuk and commitment to the democratic transition of the country, an internal note says. It would allow India to remain Bhutan's principal development partner through its crucial years of political transformation and lead to further strengthening of bilateral relations based on strategic and economic interests "in an area of high geo-political sensitivity.

" Without India's economic and political support, Bhutan would be "vulnerable to other forces", (read China). The Royal Bhutan Army's action to remove groups of Indian insurgents from within Bhutanese territory in December 2003 is proof of Bhutan's commitment to the special relationship India shares with Bhutan.

As a special gesture to celebrate the inauguration of the first session of the new, democratically elected government in Bhutan on Thursday, India has set aside a gift of Rs 287 crores. The PM's visit will coincide with the golden jubille of Jawaharlal Nehru's visit to Bhutan in 1958.

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