Pranab Mukherjee arrives in Bhutan to boost economic ties

Thimpu (Bhutan), July 27 (UNI) External Affairs Minister Pranab Mukherjee arrived here today on a three-day visit, to boost economic and political ties between India and Bhutan for mutual benefits.

After flying to Paro airport where he was received by Queen Chimmi Pamjong Wanghchuk, Mr Mukherjee reached Thimpu by road.

In the Bhutanese capital, he was welcomed by his counterpart Dasho Yanki Wangchuk.

He is expected to sign tomorrow the 1,095 MW Punatsangchu-1 hydro power project that will provide surplus power to India.

The Rs 3,514.82 crore project is part of an agreement to import a minimum of 5,000 MW of electricity from Bhutan by 2020. Earlier in March, the Indian government had committed Rs 2,610 crore for Bhutan's 9th five-year-plan.

So far, India has invested about Rs 5,000 crore in the construction of three hydro projects-- Chukkha, Kurichu and Tala-- which have an installed capacity of 1,400 MW.

Cooperation in hydel power sector is one of the main elements in Indo-Bhutanese ties, which will get a further boost during Mr Mukherjee's visit.

Besides economic ties, Royal Bhutan Army had evicted Ulfa insurgents from its territory in December-2003 and January-2004, which was a matter of major concern to India.

It will be the first high-level engagement between the two countries following the visit by King of Bhutan Jigme Kesar Namgyal Wangchuk to India in February this year when the India-Bhutan Friendship Treaty was signed.

Going on the invitation of the Royal Government of Bhutan, Mr Mukherjee is also expected to use his visit to consolidate economic and political relations between the two nations.

He will meet the King and also also hold discussions with Prime Minister Lyonpo Khandu Wangchuk and Foreign Minister Dasho Yanki Wangchuk.

The two countries already enjoy booming trade ties on the strength of a free-trade regime. India accounts for 98 per cent of Bhutan's total exports and 90 per cent of its total imports.

Since the two countries share a common boundary of about 700 kms, they have been making efforts to strengthen border management. A joint plan to further upgrade the border instrastructure, through better roads and communication links, is also expected to be formalised during the visit.

UNI