Bhutan Prime Minister Tshering Tobgay was among the foreign leaders who attended Prime Minister Narendra Modi’s swearing-in ceremony on Monday. A day after the event, he spoke to Shubhajit Roy about Bhutan’s ties with India as well as his efforts for his country’s post-pandemic economic recovery. Excerpts:
I’ve been in office for four months and it’s my second visit to Delhi and this visit is special. Because we are here at the personal invitation of Prime Minister Modi ji… So delighted to be here. And we are representing His Majesty the King and the people, and we have got to offer congratulations to Prime Minister Modi and his Cabinet.
How do you read this verdict in the Indian elections?
We are here to celebrate, celebrate democracy and in particular we are here to celebrate our friendship with India, and with the Indian people. What do I make of the results? The people have spoken. And that’s how democracy is, and it’s amazing that with such strong… otherwise supposed to be strong… anti-incumbency trends in India, Prime Minister Modi and the BJP and NDA can win a third successive tenure. And this is historic. And this is why even more congratulations are due to Prime Minister Modi ji and to the people at large.
Opposition has fared much better than before, India will now be governed by a coalition government. Will that have any impact on the India-Bhutan relationship?
Not at all. Our relations have not been defined and characterised and carried by any particular person or government or political party. Our relations are sacred, it’s unique, special, transcends politics really, regardless (of the person). As far as I’m concerned, I am delighted that Prime Minister Modi is back, because during my tenure in government 10 years ago, I worked very closely with him, (and) before him with the previous government. I worked very closely with Prime Minister Modi and his government, and developed a personal rapport. So to continue on that work, for me, it’s a privilege.
What’s your wishlist, given this is your second visit in the last three months?
This visit is for one and one purpose alone. To take part in the swearing-in, and to celebrate Indian democracy, to congratulate Prime Minister Modi. That’s it, there’s no wish list as such.
But yes, Prime Minister Modi visited Bhutan (in March 2024)… he announced an aid, assistance package of Rs 1,500 crore for Bhutan’s economic stimulus program. Our economy has not really recovered after the Covid pandemic, so this stimulus program is a critical component of our economic revival. We have already started using those funds and it is already starting to make an impact.
The other area, Prime Minister Modi also announced Rs 8,500 crore assistance to our 13th five-year plan, which begins on July 1. We are developing plans, projects for using the assistance…
The third area of cooperation is the hydropower sector. We have enjoyed a long history and a very successful partnership with the Government of India in hydropower development, and now we are really getting to the next level.
The fourth area of partnership is the Gelephu Mindfulness City. This is a special administrative zone that has been developed on the border with India, specifically on the border with Assam. And this is a vision of His Majesty the King. And Prime Minister Modi and the Government of India have agreed to support this project. In all these areas, work is already progressing very well.
You talked about the Gelephu Mindfulness City project. What is the kind of investment you’re looking at? Are there any concrete numbers you’re looking at and what is the time frame we are talking about?
These are early stages, and the master plan for the whole city is being prepared at the moment. So when I say city, it’s not really a densely populated urban area, it’s spread over more than 2,000 sq km. It has ancient forests, it has rivers, and this is going to be a wonderful living space, a unique urban living space where people live in harmony with people and… with nature.
In terms of investment, we are already receiving a lot of interest, including from India, and people are interested in the energy sector and the technology sector, health, education, wealth management in a whole range of areas. We really don’t have a time frame and we can’t have a time frame because it will grow organically, the city that is, and we really don’t have a target at the moment either.
You talked about hydropower cooperation, what are the projects in the next five years and is there a target you have about scaling up?
We have a project nearing completion and that’s going to generate more than 1,020 megawatts (MW). We have another project of 1,200 MW which is under construction. It will take another four years, maybe a little more, to complete. We have a third project of 600 MW which is also under construction. Beyond these projects, we are looking to add another, at least to begin construction on, another 5,000 MW.
You talked about the economic situation of Bhutan as you found it challenging. Are you looking at investments from India?
Yes, Indian investment is highly sought-after the world over… and in Bhutan, we welcome Indian investment. And it’s obvious why — because India has a huge market. So, the investments… from India to Bhutan could translate to exports of goods and services back to India. We have a Free Trade Agreement with India and that makes it not just possible but attractive.
There is the BBIN agreement and Bhutan has not been part of that. Have the concerns been addressed?
BBIN stands for Bhutan, Bangladesh, India, Nepal, so it’s a cooperation framework among these four countries. And it’s up to these four countries to deepen the partnership and cooperation among ourselves. One area of it is the BBIN MVA (motor vehicle agreement). In Bhutan, we see a lot of potential and opportunities in BBIN, but our people have had reservations about the MVA simply because our country is very small, our carrying capacity, our roads are very narrow, it’s in the Himalayas. We zealously guard the sustainability of our environment and our forests and we cannot accommodate too many vehicles…
Our people feel, and rightfully so, that we could get overwhelmed by the traffic of our neighbors. India is huge, so is Bangladesh and Nepal … But in other areas of BBIN cooperation, yes we should expand our cooperation and partnership in the other areas.
So what are the new areas of cooperation with India that you think are potentially opportunities in the next five years?
We’re going to have to, first and foremost, ensure that what we started during the end of Modi 2.0 is concluded, is continued, and continued successfully. And that means the economic stimulus program, the 13th five-year plan, hydropower cooperation and Gelephu mindfulness city.
And what are the challenges that you face?
Our relations are so unique, and are so special, that we don’t really have any challenges.
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