India, Bhutan ink several pacts

Thimphu: India and Bhutan on Friday exchanged several MoUs and signed agreements in the fields of energy, trade, digital connectivity, space and agriculture, and finalised the MoU on the establishment of rail links between the two nations.

The MoUs were exchanged here in the presence of Prime Minister Narendra Modi and his Bhutanese counterpart Tshering Tobgay during the ongoing two-day State visit of Modi. Prime Minister Modi met his Bhutanese counterpart in Thimphu "over a working lunch hosted in his honour". He thanked Prime Minister Tobgay for the "exceptional public welcome accorded to him, with people greeting him all along the journey from Paro to Thimphu," India's Ministry of External Affairs said here in a statement. The two leaders held discussions on various aspects of the multi-faceted bilateral relations and "forged an understanding to further enhance cooperation in sectors such as renewable energy, agriculture, youth exchange, environment and forestry, and tourism," it said. India and Bhutan enjoy long-standing and exceptional ties characterised by utmost trust, goodwill, and mutual understanding at all levels, the MEA said.

“Ahead of the meeting, Prime Minister Modi and Prime Minister of Bhutan witnessed exchange of several MoUs/Agreements on energy, trade, digital connectivity, space, agriculture, and youth connect among others,” the statement said.

In addition, both sides have also “agreed on and initialled the text of the MoU” on the establishment of rail links between India and Bhutan, India’s Ministry of External Affairs here said. The MoU provides for the establishment of two proposed rail links between India and Bhutan, including the Kokrajhar-Gelephu rail link and Banarhat-Samtse rail link and their implementation modalities, it said.

MoU on general supply of Petroleum, Oil, Lubricants (POL) and related products from India to Bhutan provides for a list of petroleum, oil, lubricants related items. India would facilitate its supply to Bhutan through agreed entry/exit points, the statement said.

Agreement for recognition of official control exercised by Bhutan Food And Drug Authority (BFDA) by the Food Safety and Standards Authority Of India (FSSAI) will facilitate the trade between India and Bhutan by promoting ease of doing business and reducing compliance costs on both sides. The MoU will make the export inspection certificate issued by BFDA acceptable by FSSAI for compliance with requirements prescribed by FSSAI while exporting the products to India.