India commits Rs.45 billion for Bhutan’s development for 12th five-year plan

To strengthen India’s diplomatic ties with Bhutan further, India has announced the allocation of Rs. 45 Billon for Bhutan’s development in its 12th Five-year plan. In the latest support plan, the Indian government has pledged Rs. 45 billion for different development projects and Rs. 4 billion for the Transitional Trade Support Facility.

According to a press release, in the 12th Five year plan for Bhutan’s development, the Indian government has asserted the support for various new projects of the Royal government, including COVID-19 Response Project, Water Flagship Project, Development of Motanga Industrial Park and the Stray Dog and Waste Management Project.

India commits Rs.45 billion for Bhutan’s development for 12th five-year plan

Third India-Bhutan Development Cooperation Talks were held earlier on 28 June 2021 in a virtual mode, and the signing ceremony was held today on September 21. On Tuesday, Foreign Secretary of Bhutan, Dasho Kinga Singye and Ambassador of India to Bhutan, Ruchira Kamboj signed the Minutes of Third Bhutan - India Development Cooperation Talks.

After the signing ceremony, Indian Ambassador Ruchira Kamboj said, "The Development Assistance model between India and Bhutan is unique, in that it is based off mutual trust and mutual understanding and always off the wishes, aspirations and priorities of the Bhutanese people."
 

Apart from this, Bhutan's Foreign Secretary praised India's contribution to the country's socio-economic development and emphasised the impact of its projects on the ground. He also praised India for its initiative to prioritise the release of funds for various initiatives in light of the COVID-19 outbreak.

Under the plan, 77 large and intermediate projects, as well as 524 Small Development Projects (SDPs) and High Impact Community Development Projects (HICDPs), are at various phases of implementation. On Tuesday, the two nations evaluated the overall development of the continuing Project Tied Assistance (PTA) projects, as well as the SDPS/HICDPs.

The Bilateral Development Cooperation Talks are an important platform for India and Bhutan to evaluate their whole development collaboration. Bhutan's 11th Five-Year Plan had a budget of Nu. 213 billion, with the main goals being self-sufficiency and inclusive green socio-economic development. The Indian government has promised to contribute Rs. 28 billion to Bhutan's 11th Five-Year Plan, with Rs. 45 billion in Project Ties Assistance (PTA), Rs. 8.5 billion in Small Development Projects (SDP), and Rs. 8.5 billion in Programme Grant / Development Subsidy.

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