NEW DELHI, 26 January 2005 — The visit of Bhutan King Jigme Singye Wangchuk, who is the chief guest at today’s Republic Day celebrations, marks the opening of a new chapter in India-Bhutan relations. A beginning was made in this direction yesterday when the two countries signed an accord to open rail links between their border towns. A memorandum of understanding on this was signed in the presence of Prime Minister Manmohan Singh and the Bhutan king, who held wide-ranging discussions on bilateral, regional and international issues of mutual interest.
The king, who arrived here on Monday evening, was accorded a ceremonial reception at the Rashtrapati Bhawan yesterday morning. In his opinion, the railway link would have a “positive impact” on the economic relations between the two countries.
Appreciating India’s response toward SAARC countries in the wake of the tsunami tragedy, the king said: “I, on behalf of SAARC countries, express deep appreciation and gratitude for India’s generous assistance to Sri Lanka and Maldives.”
“We were impressed in Bhutan to see the government and people of India get together to deal with tsunami,” he said.
Under the MOU, signed by Minister of State for Railways Naranbhai J. Rathwa and Bhutanese Foreign Minister Lyonpo Khandu Wangchuk, the two sides have agreed to conduct feasibility studies for extension of Indian railway network from West Bengal and Assam to the nearest border towns of Bhutan.
It is a part of overall strategy to upgrade border infrastructure and connectivity with Bhutan. The proposed links are between Hashimara (West Bengal) and Phuentsholing by an 18-km rail line with bifurcation to Pasakha, between Kokrajhar (Assam) and Gelephu (70 km), Pathsala (Assam) and Nanglam (40 km), Rangia (Assam) and Samdrup Jongkhar via Darrang (60 km), and Banarhat (West Bengal) and Samtse (16 km).
The two sides also signed a pact to prepare detailed reports on two major hydroelectric projects in Bhutan — Punatsangchu (Stage II) and Mangdechhu, which together are estimated to generate 1,500 MW of electricity.
“Cooperation in the power sector is one of the hallmarks of our mutually beneficial relationship with Bhutan,” the Indian government said in a statement.
It noted India had already completed the 336-MW Chukha project and 60-MW Kurichu project while the 1,020-MW Tala project is expected to be complete in early 2006.
“Cooperation in this sector represents a win-win situation for both countries. Bhutan receives a steady stream of revenue and Indian obtains cheap, clean energy to meet the growing requirements of its economy,” the statement said.
A third agreement was signed for providing the institutional framework for cooperation in agriculture and allied sectors.
The king said the agreements would have a “positive impact” on economic relations between the two countries and go a long way in further strengthening their close bilateral ties.
Wangchuck also met Indian External Affairs Minister Natwar Singh, who assured him of India’s support in sectors such as education, culture, telecommunications and infrastructure, officials said.
Land-locked Bhutan, which means “land of the thunder dragon” after its violent storms, spans 47,000 square kilometers and shares borders with Asian giants India and China.
Bhutan became a monarchy in 1907 but remained isolated from the international community until its formal admission to the United Nations in 1971.
International media were first allowed into the country in June 1974 for Wangchuck’s coronation.
Its economy is largely agrarian and underdeveloped. Per capita GDP is $1,300. The king prefers to measure his nation’s wealth in terms of “Gross National Happiness” as a development philosophy, insisting this is more important than economic development.
— Additional input from agencies



