Trekking in this Himalayan kingdom is one of the most wonderful experience a visitor can have. It is quite different from other parts of the Himalayas. The country ranges from the dense forest of subtropical jungles to the alpine shrubs, endowed with a wide spectrum of Himalayan flora and fauna. The land is thinly populated with scattered settlements. A person may walk for several days before sighting a village. Trekking in Bhutan is a recent development, although the Himalayas have always held a long-standing attraction to the Western world for trekking and mountaineering. Bhutan is one of the most exclusive and rare destinations for any tourist. The beautiful landscape, unique architecture, snowcapped peaks, colorful dzongs, Lamaist Buddhist traditions and friendly people leave an everlasting impression on the visitor. Trekking permits are required for all parties. Like other tours, trekking is handled by Bhutan Tourism Corporation Ltd. BTCL accepts only groups of six or more trekkers. A treking day usually consists of five to six hours of walking. Pack animals, ponies and yacks for the higher altitude treks, are provided for carrying provisions, baggage and equipment. All necessary camping equipment and food preparation is provided by BTCL.

All trekking parties are accompanied by a trained guide, a cook, an assistant and at least one horseman. The support crew walks ahead of the trekking party each day and pitches camp before the trekkers arrive. A warm cup of tea or coffee waiting in the dining tent is the most welcome treat after hours of walking. All meals are carefully planned. Breakfast is always hot and dinner includes a choice of at least four dishes. In many of the remote parts of the country, villages are scarce and few people cross paths, therefore BTCL takes every precaution to ensure the safety and comfort of trekkers. Altitude sickness is an acute problem for trekkers, in Bhutan. Almost all of the designated treks go above 3,000 meters. Those who have not properly acclimatised or suffer from altitude sickness are advised not to trek. If you are not used to high altitudes it is a good idea to start slowly and allow yourself to acclimatise.

Geography

Brief History

People

Natural Resources

Constitution and Form of Government

Economy

India-Bhutan Relations

1949 India-Bhutan Treaty

Bhutan's Development Plans and Indian Cooperation

Seventh Five Year Plan (1992-97)

Trade with India

Educational, Cultural and Technical Cooperation

Indian Community

Bhutan can be broadly divided into three geographic zones; Southern, Central and Northern Bhutan. Southern Bhutan consists of low foothills with an intricate maze of streams and rivers emerging into the plains in West Bengal and Assam. This area of Bhutan is a 5-10 km. wide belt, running from East to West, separating the plains from the rich valleys of Central Bhutan.

Central Bhutan has beautiful valleys at the height of 1,880 meters to 2,400 meters. They are comparatively broad and flat. High mountain ranges with heights of 3,600 to 4,500 meters separate these valleys in the region. Valleys in the Central region of Eastern Bhutan are at a height of 915 meters.

Northern Bhutan consists of high mountain ranges with rugged peaks covered with snow and ice. The range has a mountain peak rising upto 7,300 meters in the west. It runs eastwards and has two prominent peaks of about 6,400 meters. In addition, the Black Mountains which run from north to south divide Bhutan into two areas, both geographically and linguistically.

There are seven principal rivers and valleys in Bhutan, viz. Ha, Paro, Thimphu, Punakha, Tengchu, Teang and Bumthang. These valleys follow the general direction of the ranges (north to south). The population of Bhutan is mainly concentrated in these valleys where the land is fertile and mostly under cultivation.

Little is known of the early history of Bhutan or Druk Yul (the Land of Thunder Dragon). According to tradition, it appears that a tribe from the environs of Cooch Behar ruled the country prior to the Christian era. By the middle of the16th century, when Mahayana Buddhism was established in Bhutan, a form of government with dual control as represented by the 'Dharam Raja' (Spiritual leader) and 'Deb Raja' (Temporal Ruler) came into existence. The country was divided into four provinces (i) Thange (ii) Thimphu (iii) Tongsa (iv) Tashigang - each headed by a governor (Penlop). In the latter half of the 19th century, real power was vested in the Penlop of Tongsa District. The office of 'Deb Raja' ceased to exist after 1904. In 1907, the then Penlop of Tongsa Sir Ugyen Wangchuk was elected by a Bhutanese Council as a hereditary King. He was recognised as such by the British Government in India. He was succeeded by his son, Jigme Wangchuck in 1926, who was followed by Jigme Dorji Wangchuck in 1952. The present King, HM Jigme Singye Wangchuck, ascended the throne in July 1972.

The country has an area of about 46,500 sq.kms. and a population of about 6,75,000. The population density in 1994 was 14.5 per sq.km. The capital, Thimphu, is situated in Bhutan's western part at a height of about 2,440 mts. Most Bhutanese are Mahayana Buddhists mostly of the Drukpa Kagyupa sect. They were converted to Buddhism in the 8th Century A.D. by the well-known Indian saint, Padmasambhava (Guru Rimpoche). People of Nepali origin, who are concentrated mainly in the hot and humid doars of Southern Bhutan, are predominantly Hindu.

There are four main languages spoken in Bhutan; (a) Dzongkha - spoken in western and northern Bhutan, is also the official language of the country. (b) Bumthangkha in Central Bhutan, (c) Sarchapkha in Eastern Bhutan, and (d) Nepali in Southern Bhutan The first three languages are written in the Tibetan script. Nepalese is written in Devanagari.

Unlike its neighbours, Bhutan never had a rigid class system. Social and educational opportunities are not affected by rank or birth. There is tremendous social mobility. Bhutanese women enjoy equal rights with men. Archery is the national sport of Bhutan. Many Bhutanese men are skilful archers. Basketball, tennis and golf are other popular sports.

Bhutan has deposits of gypsum, dolomite, copper, graphite, limestone, coal and tungsten. Their exploration is constrained by inaccessibility of the area and high extraction and processing cost. About 70% of Bhutan is covered by forests. Bhutan has considerable potential for hydro-electric power development .

Traditionally, the Monarch in Bhutan has enjoyed absolute power. However, Jigme Dorji Wangchuck, the late King of Bhutan, progressively took steps to liberalise the country's political structure by establishing institutions associating the people of Bhutan in running the affairs of the State. Towards this end, he established the Tshogdu (Bhutanese National Assembly) in 1953. Tshogdu has 150 members of which 105 are Chimmis (representatives of the people elected for a term of three years). The Monk bodies elect 12 monastic representatives while the remaining 33 are representatives of the Government and are nominated by the King. Its principal functions are to enact laws, approve senior appointments in the Government and advise on all matters of national importance. There is also a small body called the Royal Advisory Council, which consists of nine Councillors representing the people, the Lamas and the Government. All members of the Council are also members of the Tshogdu. The principal function of the Council is to advise the King and his Ministers on all matters of national importance.

Bhutan's economy is mainly based on agriculture and animal husbandry. Consequently, the predominant occupation of 85% of Bhutanese is in this sector. The cultivation practices are still labour-oriented making only very limited use of modern technology. The main crops are paddy, maize, wheat, barley, millet and buck-wheat (the production of which was estimated at 1,25,000 MT in 1994). The horticultural crops, such as orange, apple, cardamom, a small quantity of asparagus and mushroom, and other items like pulses, mustard, potato, chillis and vegetables account for about 41,000 MT per annum. An important component of the rural economy playing a vital role in its sustenance is animal husbandry.

In the industrial sector, food processing, distillery operations and production of cement constitutes 2/3rd of the total industrial production in Bhutan. There are some 60 privately-owned small or medium scale industries, engaged in producing such consumer items as soaps, candles, matches, wooden and steel furniture, simple processed food-stuff, etc. Due to the limited domestic market, the production is on small-scale. Some of the bigger companies market their products mainly in India.

Prior to 1970, most taxes were paid in kind. In 1970 cash taxes based on the type of land holdings were introduced.The revenue base is not broad. Income taxes are levied primarily on civil servants income and small business is also taxed marginally. In lieu of income-tax rural households are taxed on the basis of their land and live-stock holdings.

Monetisation of economy is still limited and the Indian rupee, which is at par with Ngultrum (Bhutan's national currency. 1 Nu. = 100 Chhetrums), circulates freely within the country. Apart from the Royal Monetary Authority, established in 1982 to provide central banking services, there are two commercial banks, the Bank of Bhutan (jointly owned by the Royal Government and the State Bank of India) and the National Bank of Bhutan. In addition three non-banking financial institutions also exist.

Bhutan and India have traditionally enjoyed friendly and close relations. Both the countries have nurtured these ties over the years, displaying sensitivity to each other's legitimate needs and interests. An important factor in the relationship is the well established tradition of regular exchange of views between the leaders of both the countries. His Majesty Jigme Singye Wangchuck has undertaken a number of working visits to India. The then Prime Minister Shri P..V.Narasimha Rao visited Bhutan in August, 1993. The King paid an official visit to New Delhi from 4th to 7th March 1996.

1949 India-Bhutan Treaty

The basic framework of bilateral relations continues to be the Treaty of Friendship and Cooperation of 1949 between the two countries. This treaty envisages a free trade regime between India and Bhutan. As per this treaty Bhutan would be guided by the advice of the Government of India with regard to its external relations.

Serious development efforts in Bhutan began in early 1960s when India started extending financial assistance. To-date, India is the principal donor of aid for the economic development of Bhutan. So far, six Five-Year Plans of Bhutan have been completed, the first two of which were totally financed by India.

Plan-wise allocations made by the Royal Government during the years 1961-97, showing India's contribution therein, are as follows:

In the earlier period, India contributed to Bhutan's development outside the scope of the Five-Year Plans (FYP) as well. From the Fourth FYP onwards Bhutan started availing financial assistance from sources other than India including multilateral agencies.

Paro Airport, Bhutan Broadcasting Station, major highways, electricity distribution system for Thimphu and Paro; Indo-Bhutan microwave link, exploration of mineral resources, survey and mapping were some of the major projects carried out with Indian assistance. Brief details of the some major projects completed or being under execution are given below:

(i) CHUKHA HYDRO-ELECTRIC PROJECT: A good example of India's contribution to Bhutan's development is the successful 336MW Chukha Hydro-electric Project built by India on a turnkey basis at a cost of Rs.247 crore. This 336 MW project earns over 30% of revenue of the Royal Govt of Bhutan through sale of electricity to India. It was constructed and commissioned by a bilateral Chukha Project Authority (CPA), and was inaugurated by the President of India, in October 1988. After the project started functioning smoothly, it was handed over to Bhutan in June 1991.

(ii) PENDEN CEMENT PLANT with a capacity of 300 tonnes per day started trial production in 1980. The project costing Rs.14.20 crore was gifted to the people of Bhutan by India and went into commercial production in February 1982. The Penden Cement Authority, besides meeting the entire domestic requirement of Bhutan, exports surplus cement to the neighbouring Indian States. Working at its optimum capacity, the cement factory has contributed handsomely to the government exchequer. Encouraged by profits from the Penden Cement Plant, the Royal Government has proposed to establish with India's assistance a 1500 tonne per day cement plant near Nanglam in Eastern Bhutan.

iii) TALA HYDRO-ELECTRIC PROJECT is a 1020 MW project on Wangchu river downstream of Chukha project. The Government of India funds the project completely by providing 60% of the cost as grant and 40% as loan to Bhutan. The surplus power would be sold by the Royal Govt of Bhutan to India at a mutually agreed rate. The bilateral agreement for execution of this project was signed on 5th March 1996. Subsequently an eight-member Tala Hydro-electric Project Authority (THPA) has been constituted which is chaired by the Bhutanese Minister of Trade and Industry.

iv) KURICHU HYDRO-ELECTRIC PROJECT: three units of 15 MW each with provision for an additional 15MW unit are envisaged. The Government of India had earlier signed a bilateral agreement for implementation of this project , which is being executed on a turn-key basis by the National Hydel Power Corporation (NHPC).

v) DUNGSUM CEMENT PLANT is a dry process plant with an annunal capacity of 0.5 million tons per year. As per the Agreement signed on 5th March 1996, India would provide necessary funds for the project. An eight-member Dungsum Cement Plant Authority (DCPA) has been constituted, under Bhutanese chairmanship to implement the Project. M/s Holtec Consulting Pvt. Ltd., the Consultants, have submitted the updated DPR (detailed project report).

The total Indian assistance to Bhutan during the Seventh FYP (1992-97) is Rs.750 crore. Tala Hydro-electric Project, Kurichu Hyrdro-electric Project and Dungsum Cement Plant are three major projects included in the 7th FYP. Other important projects taken up under Indian assistance during the Plan period are preparation of Detailed Project Report for the Wangchu and Bunakha Hydro-electric Project; Sankosh Multipurpose Project; Hospitals at Mongar, Lhuntshi and Tashiyangtse; Paro Airport Terminal Complex and Control Tower; Expansion of Thimphu General Hospital; Restoration of Punakha Dzong; Development of Mini-hydels; Construction of a National Power Training Institute; Construction of Pasakha-Monitar Road; Construction of Schools and Identified Survey Projects.