Ties strained as India cuts fuel subsidy to Bhutan

July 6, 2013

India_cuts

New Delhi, Jul 6: Is this a case of diplomatic overkill or just the slow grind of the bureaucratic machinery? Five days ago, India withdrew all subsidy on cooking gas and kerosene being provided to Bhutan - arguably India's only unquestioned friend among its neighbours - creating a huge crisis in the tiny, landlocked kingdom and bringing the bilateral ties under strain.

Gas and kerosene prices have more than doubled in Bhutan, and predictably, this will hit the poor the hardest. The head of the interim government, Sonam Tobgye, has written to external affairs minister Salman Khurshid, seeking his intervention. Government sources here confirmed that Bhutan embassy had sought an appointment with Khurshid, who landed in Delhi only on Friday afternoon after his trip to Brunei and Singapore, to deliver the letter.

The subsidy cut has come against the backdrop of New Delhi smarting since last year when Bhutan PM Jigme Thinley appeared to be cosying up to Beijing. He had a meeting with the Chinese premier in Rio and also imported some 20 buses from China. India, which has historically supported Bhutan's foreign policy, including its membership to the UN, was taken by surprise.

The Thinley government has since played down his meeting with the Chinese leader, but not everyone in New Delhi seems convinced about its purported innocence. In fact, the mandarins here view it as a shift in Thimpu's foreign policy - a shift that appears to have been done at the instance of the elected Thinley government. However, it couldn't be ascertained whether the subsidy cut was linked to this.

Sources in Indian Oil Corporation told TOI that it stopped supplying subsidized gas and kerosene to Bhutan after it received a communication from the Indian government saying that henceforth it will not reimburse the subsidy component of fuels supplied there.

The subsidy cut has come bang in the middle of Bhutan's second election, scheduled for July 13. How big the impact of this is can be measured by the fact that the incumbent Druk Phuensum Tshogpa (DPT) party president and the last prime minister, Jigme Thinley, has cut short his campaign and returned to Thimpu. His pitch is that helping out the poor was more important than electoral campaigning.

Is the subsidy cut a considered step or some bureaucrat's ill-advised enthusiasm? Officials here are suggesting that since the Bhutan 10th Plan expired on June 30, the fresh terms of financial assistance, including subsidies, would have to be negotiated with the new government.

As it happens, apart from the China angle, New Delhi has also been miffed at the cost escalation of power projects in Bhutan which it is financing. In some cases, the cost has almost doubled, raising suspicions of some fund diversion.

India's reservations about Bhutan's policies under Thinley is said to be a key reason why New Delhi reacted very late to bail out the kingdom from its rupee liquidity crunch. It extended a standby credit facility of Rs 1,000 crore for Bhutan only in January this year during the visit of Bhutan king Jigme Wangchuck with whom New Delhi continues to enjoy excellent relations.

So, was the subsidy cut an effort to convey a message to Thimpu, more specifically to the Thinley dispensation? If so, the medium for the message could have been better chosen. The one-go subsidy cut isn't an ordinary step: it has affected over half the Bhutan population badly. What's more, it has enabled Jigme Thinley to brandish his patriotic credentials and could end up helping him in the elections.

As is well known, India isn't exactly loved by its neighbours for its alleged big-brotherly attitude. The exception has been Bhutan, which is sandwiched between two giants, India and China. While the tall Himalayas lie between Bhutan and China, it has an open border with India, as well as free trade, access of markets and cultural affinity.

While the Thinley regime might have introduced a thorn in the warm ties, the one-shot cut in subsidy may not help in bringing back the warmth. On the contrary, it might end up fanning an anti-India sentiment among the people there. So, while New Delhi's concerns seem justified, greater thought is required to handle the emerging problem.

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News Network
April 14,2020

New Delhi, Apr 14: Prime Minister Narendra Modi on Tuesday requested young scientists of the country to come forward and take the lead in developing a vaccine for novel coronavirus which has claimed over one lakhs lives worldwide.

"While India has limited resources today. I have a special request for India's young scientists. They should come forward and take a lead in developing a vaccine for coronavirus for the welfare of the world, for the welfare of the human race," the Prime Minister said in the address to the nation.

He said that if people continue to be patient and follow rules then the country will be able to defeat even a pandemic like coronavirus.
Prime Minister Modi also announced that the country will remain under lockdown till May 3 to contain COVID-19 cases. The 21-day lockdown, which was announced by the Prime Minister last month, was slated to end today.

However, he indicated at easing of lockdown restrictions in places where there are no hotspots after April 20.

"Till 20th April, all districts, localities, states will be closely monitored, as to how strictly they are implementing norms. The states which will not let hotspots increase, they could be allowed to let some important activities resume, but with certain conditions," Modi said.

Odisha, Punjab, Maharashtra, Telangana, Tamil Nadu and Puducherry have already announced the extension of lockdown.

India's total number of coronavirus positive cases has climbed to 10,363 including 8,988 active cases, 1,035 cured/discharged/migrated and 339 deaths, the Ministry of Health and Family Welfare said today.

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Agencies
June 13,2020

New Delhi, Jun 13: In a bid to provide relief to small businesses amid the coronavirus pandemic, the GST Council on Friday decided to halve the interest rate on late filing of GSTR-3B returns for the period of February, March and April 2020.

The interest rate on late return filing will be 9% from the usual 18% till September 30, 2020. The benefit will be available for small taxpayers with aggregate turnover of up to Rs 5 crore.

For the three months, small taxpayers will not be charged any interest till the notified dates for relief and thereafter 9% interest will be charged till September 30, a Finance Ministry statement said.

"For small taxpayers (aggregate turnover upto Rs 5 crore), for the supplies effected in the month of February, March and April 2020, the rate of interest for late furnishing of return for the said months beyond specified dates (staggered upto 6th July 2020) is reduced from 18 per cent per annum to 9 per cent per annum till 30.09.2020," said the statement.

The Council has also extended relief to small taxpayers for subsequent period of 2020 through waiver of late fees and interest if the returns in Form GSTR-3B for the supplies effected in the months of May, June and July are furnished by September 2020.

It has also decided to reduce the late fee on the filing of GSTR-3B returns for the period between July 2017 and January 2020. The late fee has been capped at Rs 500, but interest will be charged at the existing rate on the due tax liability.

Speaking to the media in New Delhi after a GST Council meet through videoconference, Union Finance Minister Nirmala Sitharaman said that those entities with no tax liability will not have to submit the late fee for the period.

For entities with tax liability but which have not filed returns or have filed returns late, the late fee has been capped at Rs 500 without interest. Interest will, however, be payable on the tax component at the applicable rate for delays.

To facilitate taxpayers who could not get their cancelled GST registrations restored in time, the Council has provided an opportunity for filing of application for revocation of cancellation of registration up to September 30, 2020, in all cases where registrations have been cancelled till June 12, 2020.

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Agencies
January 26,2020

Guwahati, Jan 26: Four powerful grenade explosions--three in Dibrugarh and one in Charaideo districts--rocked Assam Sunday morning as the country celebrated Republic Day, police said.

In Dibrugarh district, an explosion took place at Graham Bazar and another beside a gurudwara on A T Road, both under Dibrugarh police station.

Another explosion rocked the oil town of Duliajan whose details are still awaited, police said.

Another explosion rocked Teok Ghat under Sonari police station of Charaideo district, they said.

Senior officials have rushed to the explosion sites and details of casualty are awaited, police added.

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