India has significantly increased its diplomatic engagements with Bhutan, Nepal, Bangladesh and the Maldives.
Key Points
- External Affairs Minister S Jaishankar visited Bhutan to enhance connectivity and energy cooperation, while Defence Minister Rajnath Singh visited Sri Lanka, the first visit to the island by a raksha mantri in 38 years.
- India conveyed continued support for Nepal's flood relief and rebuilding efforts.
- New Delhi and Dhaka are discussing a visit by Bangladesh PM Tariq Rahman, despite recent reports of Bangladesh reviewing bilateral agreements, with India asserting its intent to protect its interests.
- Maldives successfully settled a $50 million tranche of treasury bills, with India absorbing $45 million in interest, and India has extended a ₹30 billion currency-swap facility to Maldives.
- India and Bhutan inaugurated five development projects, including a bridge and a hydropower project, and signed a ₹4,000 crore concessional line of credit for energy initiatives.
India has stepped up its 'neighbourhood first' outreach in recent weeks.
External Affairs Minister Dr S Jaishankar concluded a two-day visit to Bhutan on Thursday that focused on strengthening connectivity and energy cooperation between the two neighbours, while Rajnath Singh visited Sri Lanka from September 8-10, the first visit by an Indian defence minister to the island nation in 38 years.
Nepal's Finance Minister Swarnim Wagle was in India last week. On Friday, he met Dr Jaishankar and Finance Minister Nirmala Sitharaman.
India conveyed its continued support for relief, recovery and rebuilding efforts in Nepal after the recent flash floods, which have claimed over 1,400 lives as of September 18.
Engaging with Bangladesh and Maldives
Meanwhile, New Delhi and Dhaka are discussing dates for Bangladesh Prime Minister Tarique Rahman's visit to India later this year as they strive to repair ties.
Rahman skipped India's invitation to attend the BRICS Summit in New Delhi.
The ministry of external affairs on Friday said it had seen media reports about the Bangladesh government's intent to review bilateral agreements signed during former PM Sheikh Hasina's tenure.
MEA spokesperson Randhir Jaiswal, however, pointed out that Dhaka has not officially conveyed anything to New Delhi on this, and that India will take actions necessary to protect its interests.
Jaiswal said that the joint rivers mechanism is continuing to hold technical level meetings on all water-sharing issues, including the 30-year Ganges Water Sharing Treaty that ends in December.
New Delhi on Friday said that the Maldives successfully settled the final tranche of $50 million in treasury bills on September 17.
This was part of a total of $150 million subscribed by the State Bank of India, with India absorbing the entire $45 million in interest settlement.
Jaiswal said the SBI had subscribed to the treasury bills since 2019, extending them six times, each for a year, until now.
While the principal amount was paid by the Maldivian government, Jaiswal said the interest payment of all the $150 million treasury bills over the past five years was borne by the India.
'The total amount paid by India in interest settlement was close to $45 million,' Jaiswal said.
India has also extended a ₹30 billion currency-swap facility to the Maldives to support the Maldivian financial system.
In addition, India has subscribed to $350 million worth of T-Bonds which are valid till 2029 and 2030, Jaiswal said.
India-Bhutan Cooperation
Jaishankar and his Bhutanese counterpart inaugurated and launched five development projects, including the Jaganathan bridge in eastern Bhutan, and groundbreaking and foundation stone laying of the 500 kilowatt Lunana Hydropower Project.
India-Bhutan energy cooperation in the last couple of years has included the inauguration of the 1,020 megawatt (Mw) Punatsangchhu-II hydroelectric project (HEP) and signing of its tariff Protocol, and the resumption of dam construction of 1,200 Mw Punatsangchhu-I HEP.
India and Bhutan have also signed the agreement on a concessional line of credit of ₹4,000 crore for energy projects in Bhutan.
Feature Presentation: Rajesh Alva/Rediff
