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India, Bhutan sign agreement on rail links
Publish Date : 1/26/2005 12:28:00 PM   Source : Advertising and Business News

Travelling to Bhutan, often described as the "last Shangri-La", will become easier when the Himalayan kingdom is linked by a railway network under a landmark agreement signed with India Tuesday.

A memorandum of understanding to connect five towns in the Indian states of Assam and West Bengal to as many major Bhutanese towns was signed following talks here between Prime Minister Manmohan Singh and King Jigme Singye Wangchuk.

The king, who is on a six-day visit to India, will be the chief guest at India's Republic Day celebrations Wednesday - a special gesture New Delhi extends to its close friends.


 

In the case of Bhutan, it is India's way of saying "thank you" for the military crackdown it ordered in 2003 on anti-India rebel groups operating from the Buddhist kingdom of less than a million people.

Under Tuesday's agreement, the two sides are to undertake feasibility studies for the extension of the Indian railway network to Bhutanese towns.

The proposed links are between Hashimara (West Bengal) and Phuentsholing by an 18-km rail line with bifurcation to Pasakha, between Kokrajhar (Assam) and Gelephu (70 km), Pathsala (Assam) and Nanglam (40 km), Rangia (Assam) and Samdrup Jongkhar via Darrang (60 kms), and Banarhat (West Bengal) and Samtse (16 km).

The agreement is part of India's overall strategy to upgrade border infrastructure and connectivity with Bhutan and other neighbouring countries.

The two sides also signed a pact to prepare detailed project reports on two major hydroelectric projects in Bhutan -- Punatsangchu (Stage II) and Mangdechhu, which together are estimated to generate 1,500 MW of electricity.

"Cooperation in the power sector is one of the hallmarks of our mutually beneficial relationship with Bhutan," the Indian government said in a statement.

It noted India had already completed the 336-MW Chukha project and 60-MW Kurichu project while the 1,020-MW Tala project is expected to be complete in early 2006.

"Cooperation in this sector represents a win-win situation for both countries. Bhutan receives a steady stream of revenue and Indian obtains cheap, clean energy to meet the growing requirements of its economy," the statement said.

A third agreement was signed for providing the institutional framework for cooperation in agriculture and allied sectors.  

The king said the agreements would have a "positive impact" on economic relations between the two countries and go a long way in further strengthening their close bilateral ties.

President A.P.J. Abdul Kalam accorded a ceremonial welcome Tuesday to the king in the forecourt of Rashtrapati Bhavan, the presidential palace, on a cold wintry morning as he began his official engagements.

Prime Minister Manmohan Singh, senior ministers, officials and diplomats were present.



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