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.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 13,2020

New Delhi, May 13: Vice President M. Venkaiah Naidu on Wednesday said that Prime Minister Narendra Modi's announcement of Rs 20 lakh crore stimulus package "will go a long way in overcoming challenges" posed by the COVID-19 pandemic.

"Welcome the Rs. 20 lakh crore stimulus package announced by the Prime Minister, Shri Narendra Bhai Modi Ji to revive economy, boost efficiency of various sectors through reforms & make India self reliant and resilient. #AtmaNirbharBharatAbhiyan," the Vice President tweeted.

Calling the reforms as the "need of the hour", he further said: "Bold reforms are the need of the hour to realize the dream of #AtmanirbharBharat."

Expressing confidence in the five-pillar approach, he said that it would help promote local industries "while making India face global competition effectively".

"I am confident that a focused approach on the five pillars- Economy, Infrastructure, Technology driven System, Vibrant Demography & Demand--will promote local industries led growth while making India face global competition effectively. #AtmaNirbharBharatAbhiyan," he said.

"I am certain this timely economic package will go long way in overcoming challenges posed by the unprecedented COVID-19 pandemic. #AtmaNirbharBharatAbhiyan #IndiaFightsCorona," he wrote on the micro-blogging site.

The Prime Minister had on Tuesday announced Rs 20 lakh crore special economic package for the country to become 'self-reliant' and deal with COVID-19.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
January 23,2020

Jammu, Jan 23: The National Investigation Agency (NIA) has brought the disgraced Deputy Superintendent of Police (DSP) Davinder Singh to Jammu for investigations.

According to sources, Davinder Singh has been brought on a transit remand. A formal remand from the NIA court for interrogation will be taken on Thursday.

On Wednesday, fresh raids were carried out by the NIA at Singh's residences in Srinagar.

Singh was caught while transporting two militants, Naveed Babu and Rafi Ahmed, and a lawyer Irfan Ahmed in a vehicle to Jammu on January 11.

According to sources the two militants and the lawyer had plans to travel to Pakistan after reaching Jammu.

The case was transferred to the NIA after initial investigation by the Jammu and Kashmir Police.

Singh has been dismissed from the service and the Jammu and Kashmir administration on Monday forfeited the commendation medal and certificate awarded to him.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
January 31,2020

New Delhi, Jan 31: The central government has decided that pensioners' life certificates will be collected from their doorstep, saving them from hassles of visiting pension disbursing banks.

The service will be charged an amount not exceeding Rs 60, according to a statement issued on Thursday by the Department of Pension and Pensioners' Welfare (DoPPW).

Every year a pensioner is required to give proof of him being alive to banks in order to ensure continued pension. These certificates can be submitted online or by visiting the bank.

"The department has taken a landmark step to make life easier for senior citizens to submit their annual life certificate for continued pension," it said.

Directions have been issued to all pension disbursing banks to send SMS or emails to all their pensioners on October 24, November 1, November 15 and November 25 every year reminding them to submit their annual life certificates by November 30, the statement said.

"The bank in addition will also ask such pensioners through SMS/email as to whether they are interested in submission of life certificate through a chargeable doorstep service, the charge not exceeding Rs 60, it said.

The department for stricter monitoring and in order to ensure that no pensioners are left out has also directed the banks to make an exception list on December 1 every year of those pensioners who fail to submit their life certificate and issue another SMS or email to them for submitting it.

The Central Pension Processing Cells (CPPC) of the pension disbursing banks shall now be duty bound to submit a report to the DoPPW in January, February and March.

The report will indicate the total number of pensioners who have not given their life certificate along with a breakup of the certificates submitted physically and through digital means, the statement said.

This is a landmark step from the side of the central government showing due care for pensioners, it said.

This step is in addition to the order issued in July last year, vide which all pensioners aged 80 years and above have been given an exclusive window to submit their life certificate w.e.f. 1st October every year instead of 1st November every year, the statement added.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.