India exempts Bhutan from export ban on essential commodities

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India has exempted Bhutan from the application of the export ban on essential commodities such as milk powder, wheat, edible oil, pulses and non-Basmati rice, with annual limits indicated by the Bhutanese side.

 

Commerce and Industry Minister Anand Sharma told visitng Bhutanese Minister for Economic Affairs Lyonpo Khandu Wangchuk here today that the Director General of Foreign Trade (DGFT) had issued a notification in this regard.

 

Wangchuk expressed happiness over India's acceptance of Bhutan's request in this matter.

 

“India values the special relationship with Bhutan and we will be happy to expand our multi-faceted cooperation which already covers key sectors such as hydropower, health, education, human resource development, media, telecom, ICT and infrastructure," Sharma said.

 

Both leaders expressed satisfaction that progress in meeting the target of developing 10,000 MW of hydropower capacity in Bhutan by 2020 was on schedule. Bhutan has an estimated hydropower potential of 30,000 MW with a little over 1,472 MW harnessed. 

 

Three major hydroelectric power projects (HEPs) have been built with Indian assistance in Bhutan - 336 MW Chukha, 60 MW Kurichhu and 1020 MW Tala HEPs. 

 

In July 2006, India and Bhutan signed an Agreement wherein India agreed to develop and import 5000 MW of electricity from Bhutan by 2020. This target was revised to 10,000 MW during the Prime Minister's visit to Bhutan in May 2008. 

 

Bhutan has been requesting for Ghasuapara and Dalu in Meghalaya on Indo-Bangladesh border as exit/entry points for Bhutan’s trade with Bangladesh. 

 

Sharma said that the Letter of Exchange (LOE) has been signed for allowing LCSs from 1st February, 2012. Similarly, The Letter of Exchange (LoE) to amend the Letter of Guarantee (LoG) under the India-Bhutan Agreement on Trade, Commerce and Transit has been finalised for implementation from 01.02.2012. 

 

Total trade between the two countries has been increasing, with India's exports to Bhutan at $ 176 million imports from Bhutan at $ 201.57 million during 2010-11. India’s trade balance with Bhutan has turned negative from 2006. Both the Minister expressed the confidence that the trade can be diversified and also be doubled in less than five years. 

 

NNN

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