The Government of India (GoI) released Nu 1.225 billion (bn) for development projects, being undertaken through GoI’s Trade Support Facility (TSF) and the Program Grant (PG).
For the 12th Plan, GoI has committed Nu 8.5 bn as the untied Program Grant. In addition, India has also committed Nu 4 bn as Transitional Trade Support Facility for the 12th Plan.
In order to upgrade the Trade Infrastructure of Bhutan, improve Ease of Doing Business and strengthen bilateral economic linkages, Nu 800 mn has been provided in this release toward the transitional Trade Support Facility.
Under this Pasakha Dry Port is being constructed, feasibility studies of Nganglam and Gelephu Dry Ports are being undertaken and Bhutan Integrated Taxation System, one of the components of the flagship Digital Drukyul is being implemented, among others.
Further, to facilitate the government in implementing its development agenda, an amount of Nu 425 mn has been provided out of the present release as program grant. The program grant facility is an untied grant in the form of direct budgetary support to the finances of the Royal Government.
As a special gesture, India has also authorized the export of wheat and sugar to Bhutan, as per Bhutan’s requirements, i.e. 5000 MT of wheat and 10,000 MT of sugar.