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Staff reporter  

Bhutan received Nu 1,225 million (M) from the Government of India (GoI) on August 11 to carry out various development projects, being undertaken through GoI’s trade support facility and the programme grant.

For the 12th Plan of Bhutan,  GoI has committed Nu 8.5 billion (B) as an untied programme grant. India has also committed Nu 4B as a transitional trade support facility for the Plan.

Of the Nu 1,225M, Nu 800M is for the transitional trade support facility which is paramount to upgrading the trade facility, improving the ease of doing business and strengthening bilateral economic linkages.

Under the transitional trade support facility, the Pasakha dry port is being constructed, feasibility studies of Nganglam and Gelephu dry ports are being undertaken and Bhutan Integrated Taxation System is also implemented, among others.

A programme grant of Nu 425M has been provided to implement Bhutan’s development agendas.



A press release from the Indian Embassy stated that the programme grant facility was an untied grant in the form of direct budgetary support to the finances of the government.

The press release also said that India has authorised the export of wheat and sugar to Bhutan as a special gesture. “As per Bhutan’s requirements, 5000 MT of wheat and 10,000 MT of sugar, to be imported by the Food Corporation of Bhutan Limited and other leading industries in Bhutan.”

“In view of this special relationship, notwithstanding the global supply chain disruptions and shortages of various commodities, India has decided to accommodate Bhutan’s special requests,” the press release stated.

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