No Export Quotas for
Bhutan, India Allows Transit for Bhutan Trade with Bangladesh
Bhutan has expressed
happiness over acceptance of their request of exemption from application of any
export bans on essential commodities. The Minister of Commerce, Industry and
Textiles, Anand Sharma, during his meeting with Mr. Lyonpo Khandu
Wangchuk, Minister for Economic Affairs of Bhutan on
3 February, informed that Director General of Foreign trade has issued
notification exempting Bhutan from the application of export ban on Milk
Powder, Wheat, Edible Oil, Pulses and Non-Basmati Rice with annual limits
indicated by the Bhutanese side. “India values the special relationship with Bhutan
and we will be happy to expand our multifaceted cooperation which already
covers key sectors such as hydropower, health, education, human resource
development, media, telecom, ICT and infrastructure” said Anand
Sharma.
Both leaders expressed satisfaction
that progress in meeting the target of developing 10,000 MW of hydropower
capacity in Bhutan by 2020 is 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
PM’s visit to Bhutan in May 2008.
Bhutan has been requesting for
Ghasuapara and Dalu in
Meghalaya on Indo-Bangladesh border as on exit/entry points for Bhutan’s
trade with Bangladesh. Anand Sharma informed 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. Total exports to Bhutan were $ 176.00 million
while total imports from Bhutan were $ 201.57 million during 2010-11. India’s
trade balance with Bhutan has turned negative from 2006 i.e. India imports more
than it exports to Bhutan. Both the Minister expressed the confidence that the
trade can be diversified and also be doubled in less than 5 years.
[Source: Ministry of
Commerce & Industry, PIB Press Release dated 3rd February 2012]