New Delhi: India today enhanced its standby credit facility for the Himalayan nation to Rs 400 crore and exempted the neighbouring country from the ban on export of essential commodities. India also reiterated its commitment to assist Bhutan in its socio-economic development programmes and reaffirmed its full support to the country’s 10th Five Year Plan. These announcements came after visiting Bhutan Prime Minister Lyonchen Jigmi Y. Thinley held official-level talks with Prime Minister Manmohan Singh. Thinley is on his first overseas visit after becoming the Prime Minister of the first democratically elected government recently.

Earlier in the day, Thinley, who is accompanied by a high-level delegation on his four-day state visit, was accorded a warm welcome at the forecourt of Rashtrapati Bhawan. He also held meetings with President Pratibha Patil, Vice-President Ansari and other Indian leaders, including UPA chairperson Sonia Gandhi and external affairs minister Pranab Mukherjee. Briefing reporters, an external affairs ministry spokesman said the credit would be drawn on favourable terms by Bhutan, as and when necessary, to ensure stability of its currency reserves and to meet its obligations. An agreement to this effect will be finalised shortly. New Delhi also committed to double its 10th plan assistance over the revised outlay assistance in the 9th plan period.

The spokesman said India was committed to enhancing its development assistance and cooperation. To this end, India and Bhutan will undertake mid-term reviews, on a rolling basis, of the plan to enhance the allocation of resources as required. He said India was committed to developing 10,000 MW of hydropower in Bhutan for export to India by the year 2020. This would be done through direct assistance and in collaboration with Indian public sector undertakings. India has also agreed to positively consider Bhutan’s request for removal of export duty on the supply of industrial raw material, including coal and steel billets, to the Himalayan nation.

Courtesy: Tribune News Service