M/s Gyeldron Venture

03/02/2022

More Bhutanese have left for Australia in a chartered flight.

Many more are booking flight to India for IELTs test to go abroad.

Given that country has small population and many untapped resources, actually people should be able to make future within country. But seems not enough opportunity for everyone.

New areas could be opened for economic activities and create entrepreneurship and employment.

Instead we go for banning and closing. It could mean that perhaps there is little more restriction than required in economic sector.

For highly populated countries, even if millions leave, it don't affect domestic economic productivity that much, brain drain and other national issues.

Here population excluding foreign workers is less than 700,000. So far, we have gungtong only.

Sometimes we take years to take a decision. On other hand, some policy change with every new government. That create uncertainty in investment environment for pvt sector.

After all humans want better future for them and children. People going abroad for study and work is not necessarily bad.

But it makes to realize the hard fact that our economic situation and system are no better from countries which depend on remittance.

Just a humble view from a humble layman🙏

Pic- Sonam Tshering

07/08/2021

The government is looking into addressing the uncertainty for the mining sector after the summer session of Parliament deferred the Mines and Minerals Bill (MMB) 2020 indefinitely.

24/07/2021

https://kuenselonline.com/a-communitys-dream-to-take-part-in-mining-cut-short/

Lost and worried, members of the Pedmi Dejung Kuenphen Private Limited (PDPL), a company formed by people of four gewogs in Samdrupcholing drungkhag, are now suspecting there could be more reasons than just their inability to procure machineries on time that disqualified them from the contract to hi...

23/07/2021

Date: 26-06-2021 Business
Tenzing Lamsang/ Thimphu
The Mines and Minerals Bill of Bhutan 2020 was deferred by the Speaker after the Chairperson of the Joint Committee for the Bill, MP Kinley Wangchuk recommended that the Mines and Minerals Bill of Bhutan 2020 be deferred in the Joint Sitting. The Chairperson submitted that despite holding meetings for six times, the Joint Committee could not arrive at a consensus on the
Bill.
However, this did not sit easy with the National Council and also certain members of the Opposition party for two reasons. One was the Speaker cutting short the discussion after two hours when three days had been allotted for the
Bill and the other issue pointed out was that section 59 A (2) of the Legislative Rules of Procedure used by the Speaker to defer the Bill is not in keeping with the Constitution.
It was pointed out Article 13.8 of the Constitution says, ‘Where the House in which
the Bill originated refuses to incorporate such amendments or objections of the other House, it shall submit the Bill to the Druk Gyalpo, who will
then command the Houses to deliberate and vote on the Bill Questions over Deferment of Mines and Minerals Bill of Bhutan 2020 and the 2-hour debate timein a joint sitting.”
It was pointed out that this Constitutional section has no provision for deferment. It was also pointed out that past Kasho’s by His Majesty
on joint sitting had clearly indicated that a bill must be voted on and if it cannot get the votes then it becomes a dead bill. The feeling within some MPs from the NA and NC is that the debate was cut short within two hours and deferment was done as a three-day discussion would have brought out many issues
in the mining sector and a vote on the issue would force the hand of the government and MPs to show their position on the issue.
There was some heated exchange between some MPs and the Speaker and the NC Thrizin Tashi Dorji even got up to say that the Speaker had engaged in some debate with the members hinting that the Speaker is only supposed to moderate the proceedings.
This is because even deferment is similar to a Dead bill as the Mining Bill can now be reintroduced only after a year if it is introduced with the key difference being that before a Bill is dead there would have been extensive deliberation and then a vote.
A NC member told this paper that the JC had seven members from the NA and five members from the NC and though the NC members were not in favour of deferment the majority in the committee was with the NA members.
He also said that the section 59 A (2) was actually supposed to be a one-time provision to save the former government the blushes with India and protect the friendly foreign relations as there was a danger of the joint sitting not approving the BBIN agreement.
The member said that even if the Mining Bill was
passed to allow private sector involvement in mines then it would not be in keeping with the Constitution. He said that even the National Law Review Task Force had pointed this out.
Talking to the paper the Speaker Tshogpon Wangchuk Namgyel on his part said that the Mining Bill cannot be equated to a Dead Bill as the JC had not even presented any points of discussion and he said the recommendation was for deferral. He said that even then people were allowed to speak for around two hours and then only deferral was done. The Speaker said that even this two-hour discussion was ‘very boring’ for many of the members.
The Speaker said that if the discussion was allowed to drag one for three days then there would be all kinds of attempts to put pressure and also possible lobbying on the sides. The Speaker said that the people raising an issue with the 59 A (2) and deferment may be talking from their point of view after their certain
objectives were not achieved.
The Speaker pointed out that the LROP and section 59 A (2) had been agreed to by both houses. He said that it is possible that 59 A (2) may not be in keeping with the Constitution but this section had been brought from the time of the first government in 2011 and had been amended in 2017. He said that if its Constitutional nature is in question then the
Parliament can discuss and amend it but it was used as it is still there in the rules. On the debate between him and some members the Speaker said that all kinds of insinuations were being made and so he had to reply and let them know when the LROP had come in among other
points. Meanwhile, as of Friday there was no indication from the National Council on if it plans to challenge the Constitutionality of section 59 A (2) for a judicial review, which it can do after deliberating on it and writing to His Majesty to ask for a Judicial Review. The Mines and Minerals Bill of Bhutan 2020 was introduced and passed by the National Assembly in its 2nd
and 3rd Session of the Third Parliament and presented to the National Council for deliberation during its 26th Session. However, the National Assembly during its re-deliberation on the Bill could not incorporate the amendments of the National Council. The Joint Committee on the Mines and Minerals Bill of Bhutan was then formed in line with the Legislative Rules of Procedure 2017 to review the disputed clauses of the Bill.
At the heart of dispute lies the debate on who should have ownership of the lucrative mines and the key to this debate is in the interpretation
o f A r t i c l e 1 . 1 2 o f t h e Constitution that says, “The rights over mineral resources, rivers, lakes and forests shall vest in the State and are the properties of the State, which will be regulated by law.”

30/06/2021

𝐏𝐫𝐞𝐬𝐬 𝐫𝐞𝐥𝐞𝐚𝐬𝐞
𝐉𝐮𝐧𝐞 𝟑𝟎, 𝟐𝟎𝟐𝟏

The COVID-19 pandemic continues to pose serious risks to the health and livelihood of our people. The containment measures and lockdowns have adversely affected everyday life and business, creating economic hardship. In order to mitigate the impact, build resilience and give confidence and security to our people, His Majesty The King commanded at the very start of the pandemic that the State must extend substantive, timely and inclusive support to affected citizens and communities.

The Druk Gyalpo’s Relief Kidu (DGRK) in the form of Income Support and Loan Interest Payment Support were provided for the last twelve months (April 2020 to March 2021). It is being continued for another fifteen months until June 2022.

While the DGRK has been the most effective form of intervention to the general public, conventional forms of monetary measures have also complemented the Royal Kidu in shielding the individual borrowers and business entities from the consequences of the prolonged pandemic. The Phase II monetary and fiscal measures have been in force since July 1, 2020 and will come to an end by June 30, 2021.

As there is no sign of the pandemic or its consequences abating anytime soon, some key monetary and fiscal measures shall be continued as follows:

𝐈. 𝐌𝐨𝐧𝐞𝐭𝐚𝐫𝐲 𝐌𝐞𝐚𝐬𝐮𝐫𝐞𝐬, 𝐉𝐮𝐥𝐲 𝟐𝟎𝟐𝟏 – 𝐉𝐮𝐧𝐞 𝟐𝟎𝟐𝟐

(a) Continuation of deferment of loan repayments

Considering the continued impact and uncertainties posed by the COVID-19 pandemic, the deferment of loan repayment shall be continued as follows:

(i) All loans sanctioned as of June 30, 2020 shall be eligible for the deferment of loan repayment for another one year until June, 2022.

(ii) Notwithstanding the above provision, the Financial Service Providers (FSPs) may negotiate with the borrowers for revival/rehabilitation or foreclosure of non-performing loans.

(iii) In order to ease the burden of loan repayment on the borrowers, the FSPs may extend the loan tenure by the deferred period or by up to five years depending on the repayment capacity of the borrowers.

(b) Incentive for regular repayments during the deferment period

As the provision of interest rate rebate proved effective in motivating the borrowers to make regular repayment, the interest rate rebate for loans during the deferment period shall be continued as below:

The FSPs shall continue to provide one percent interest rate reduction (rebate) on term loans for another one year from July 2021 to June 2022 to the borrowers who service their loan installments (after adjustment of 50 percent interest payment support) during the deferment period.

(c) Non-capitalization of interest accrued during the deferment period

The FSPs shall not capitalize the interest accrued during the deferment period. The total accumulated interest from April 2020 to June 2022 shall be payable in equal installments after the end of the deferment period.

(d) Treatment of Bridging Loans/ Soft Term Loans sanctioned under Phase II Monetary Measures

(i) The FSPs shall provide gestation for another one year until June 2022 for the Bridging Loans or Soft Term Loans granted to the business entities under the Phase II Monetary Measures.

(ii) The FSPs shall not capitalize the interest accrued during the gestation period. The total accumulated interest from April 2020 to June 2022 shall be payable in equal installments after the end of the gestation period.

(e) Loan-to-Value (LTV) limit and Land valuation

(i) In case of project financing/ business loans, the FSPs may provide loans up to the LTV limit of 100 percent of the collateral value. However, the maximum debt-to-equity financing limit shall continue to apply. The LTV limits for housing loans and vehicle loans shall remain unchanged.

(ii) As proposed by Financial Institutions Association of Bhutan (FIAB), the FSPs may adopt uniform land rates for the valuation purposes as per the agreed modality among the FSPs.

𝘕𝘰𝘵𝘦: 𝘛𝘩𝘦 𝘙𝘔𝘈 𝘸𝘪𝘭𝘭 𝘪𝘴𝘴𝘶𝘦 𝘢 𝘴𝘦𝘱𝘢𝘳𝘢𝘵𝘦 𝘚𝘵𝘢𝘯𝘥𝘢𝘳𝘥 𝘖𝘱𝘦𝘳𝘢𝘵𝘪𝘯𝘨 𝘗𝘳𝘰𝘤𝘦𝘥𝘶𝘳𝘦𝘴 𝘧𝘰𝘳 𝘵𝘩𝘦 𝘴𝘮𝘰𝘰𝘵𝘩 𝘪𝘮𝘱𝘭𝘦𝘮𝘦𝘯𝘵𝘢𝘵𝘪𝘰𝘯 𝘰𝘧 𝘵𝘩𝘦 𝘗𝘩𝘢𝘴𝘦 𝘐𝘐𝘐 𝘔𝘰𝘯𝘦𝘵𝘢𝘳𝘺 𝘔𝘦𝘢𝘴𝘶𝘳𝘦𝘴.

𝐈𝐈. 𝐅𝐢𝐬𝐜𝐚𝐥 𝐌𝐞𝐚𝐬𝐮𝐫𝐞𝐬 (𝐉𝐮𝐥-𝐃𝐞𝐜 𝟐𝟎𝟐𝟏)

In order to ensure sustained economic stability and support resilient recovery, the Government has allocated one of the highest capital budget at 33 percent of the 12 FYP capital outlay for the Fiscal year 2021-22. In addition, following fiscal measures will be extended during the period July to December, 2021.

1. CIT/BIT deferral: Income tax deferral for income year 2019 for tourism and allied sectors including entertainment sector shall be considered on a case by case basis upon application for the period July to December, 2021. In order to enable business entities to settle CIT & BIT outstanding, installment payment of incomes tax shall be extended to the business entities.

2. Electricity charges for industries: Industries shall continue to pay demand charges based on actual consumption for the period July to December, 2021. Payment of electricity charge for industries shall be considered for deferral on a case by case basis upon application. In order to ensure that the deferrals are targeted towards industries actually impacted by the current situation, the MoEA and M*F shall verify the eligibility criteria during the extended period.

3. Electricity & WiFi charges for Hotels used as quarantine facility: WiFi and electricity shall be provided free of charges to the hotels used as quarantine facility up to December 2021.

4. Waiver of payment of monthly rent and other charges: As the tourism and the aviation sectors continue to be severely impacted, waiver of payment of monthly rent and other charges for tourism related business entities leasing government property shall be continued up to December 2021.

5. Revised Customs Duty: The rationalization and simplification of customs duty has been passed by the 4th session of the 3rd Parliament as ‘Customs Duty Act 2021’. The implementation of the revised customs duty is expected to stimulate economic activities, promote export and contain inflation.

6. Fiscal Incentives: The existing fiscal incentives expires by December 31, 2021. In this regard, the Government will review the existing fiscal incentives and propose revision of incentives to ensure business continuity and stability besides supporting a resilient economic recovery.

The effectiveness of the fiscal measures will be reviewed by December 2021 and extended based on the situation of the pandemic.

06/10/2020

Realising there are many business ideas that can build a more resilient economy, it is also a fact that all business ideas do not have collateral support to access financing. So to bring ideas to reality and support the private sector, the government launched The National Credit Guarantee Scheme tod...

26/09/2020

Bhutan Prime Minister Lotay Tshering had also called for reform in the UN, saying the world body should evolve and cater to the changing realities

18/09/2020

Hydropower being key to the India-Bhutan friendship, it was my pleasure to welcome excellent government colleagues to Thimphu. Commencing their tenures at the Puna I & II hydro projects, I wish them the very best!

PMO India Ministry of External Affairs, Government of India Press Information Bureau - PIB, Government of India

22/06/2020

Meeting the chief executive officers of financial institutions today, Prime Minister Dr Lotay Tshering thanked them for their support in the first three months of monetary intervention, and sought similar cooperation hereon.

Prime minister urged the banks to consider innovative, long term solutions as the country explored ways to see through the economy wounded by COVID situation.

“We all know that the pandemic will not go away in six months, and the businesses, despite intervention will not pick up in such short time,” he said. “Which means short term measures will only postpone the problem and not solve it.”

Even if we defer equated monthly installment (EMI) for one year, what happens after that? If we are considering soft loans, what are the conditions? This is not a normal situation, where businesses are taking money to make profits. It is more for covering losses.

Lyonchhen asked the banks to zoom out and consider an expanded view of over a decade or more. This will enable banks to consider profits later and make practical exceptions today. That way, government, private sectors and financial institutions will have more space to work together in the most efficient way.

The longer duration would also give banks opportunity to see through the years and predict profits, which will give them confidence to make bold approaches, absorb more losses now, and gradually tide over the situation.

“Different banks can come up with different, inventive packages and good business strategies that will win over private sector and gain confidence of more clients,” lyonchhen said. “Helping them now is also to the bank’s advantage.”

Lyonchhen also asked Royal Monetary Authority to make regulatory relaxations now, so that financial institutions can broaden scope and strategise way forward, which in turn will help private sector navigate with more conviction.

Government, on its part, assured to work on long term fiscal measures and incentives to support financial institutions.

Meanwhile, he said Bhutan has set new standards in handling the health emergency, adopting radical surveillance modes, doing away of home quarantine, and introducing mandatory 21-day government sponsored facilities.

“Isn’t this also an opportunity for our financial institutions to go beyond international norms and come up with a unique solution?” lyonchhen said.

04/09/2019

The Penden Cement Authority Limited’s (PCAL) annual profits have been on the decline since 2015. Records maintained with the Royal Monitory Authority (RMA) show, sales dipped from Nu 2.6bn in 2015 to Nu 1.6bn, last year.

04/09/2019

03/09/2019

GNH Today

by HRH Princess Kezang Choden Wangchuck
President of the Board GNH Centre Bhutan

His Majesty the fourth King first proclaimed four decades ago that, Gross National Happiness is more important than Gross National Product. Since then, Bhutan has adopted a holistic approach to development within the GNH framework that comprises the four pillars and their nine domains of which I am certain you are already familiar. This has enabled us to balance modernity with tradition, material with spiritual, economic with social, and physical transformation with ecological conservation. But this is not to say that we have discovered the remedy for all the ills and that Bhutan is clearly set on the path to happiness. I am aware that there are those who like to speak of our country as the land of happiness and presume that all our people are happy. We too wish these were true. But in reality, we are a developing country that has just become a low middle-income country. For too many -about 12% of our people – survival remains a struggle and happiness is only a dream. We have our share of misery and unhappiness.

What sets Bhutan apart is our devotion to the pursuit of happiness. What makes us different is that we are guided by the conviction that the purpose of development is to create conditions that will enable all citizens to find happiness.

Today, we as Bhutanese are firmly rooted in our hallowed values, and as small a nation as we are, we are a proud cultural entity with a strong sense of identity. It is true that we are well immersed in the globalized world and are fully exposed to its benefits and harms. But, I am pleased to state the integrity of our extended family network, communities and religious institutions manifest our resilience as a society that is able to reconcile material pursuits with those of spiritual growth. Our economy has grown and unemployment has decreased. Yet, our green cover has increased from 72% to over 80% with 50% of our entire territory having been declared as protected areas.

Bhutan has demonstrated that economic growth, agricultural expansion, urban development and industrial development need not come at the cost of ecological conservation. This has emboldened us to declare that we shall forever remain carbon neutral in an environment that is already made hazardous by an excess of green house gas emission.

Although the GNH model has indeed, served us well, with its nine domains and indexes, we do not claim that it is the best option. It has its limitations. We see it as a dynamic design that must be constantly enriched and improved with the help of people from all walks of life who bring with them immense experience and knowledge with a shared inspiration to create a better world. In this regard, we are most heartened by the interest the world has taken in our development approach.

The reasons for this interest are compelling. Financial systems are unraveling and economies falling apart; natural resources are depleting rapidly and ecosystems collapsing; climate change, water scarcity and disasters are every day realities; health, food and political crises hit us with growing intensity and our society is crumbling. Wars are a constant threat and the possibility of the use of nuclear and chemical weapons are becoming disconcertingly greater. It is an insecure, inequitable, unsustainable and unhappy world that we have created. Our world needs to change and I am convinced that this can happen only when mankind mends its ways and it alters, in a drastic way, the way it lives. Thankfully there are encouraging signs. In July 2011, the United Nations passed a resolution titled Happiness: Towards a Holistic Approach to Development stating that happiness is a fundamental human goal and universal aspiration. In April, the following year, 800 leaders and representatives from all walks of life joined the United Nations Secretary general and Nobel Laureates at a meeting organized by the Kingdom of Bhutan at the United Nations to consider the idea of a new development paradigm. Shortly thereafter, the UN proclaimed March 20th each year as the International Day of Happiness. It inspired UN Secretary General Ban Ki Moon to note that:

The old model is broken. We need to create a new one. Clearly, we must unite around a shared vision for the future, a vision for equitable human development, a healthy planet, an enduring economic dynamism.

These give us cause for hope. The 21st century could very well become the century of redemption. Your presence here takes me beyond hope. It convinces me that we will see within our lifetime, the realization of our hope for a better future. You convince us that the vision of a sustainable, equitable and happy world can be translated into reality that there are good, caring people who will strive to do so.

17/08/2019

09/08/2019

9 August 2019: His Majesty The King Granted an Audience to the Graduates of the Royal Institute of Management on the eve of their Convocation Ceremony.

Before the Royal Address, His Majesty spent time interacting with the graduates and hearing their concerns and insights about the trajectory of our progress and the future of our country.

Addressing the graduates, His Majesty said that it is our responsibility to protect and preserve everything that we value the most- our past achievements, core values, identity, and national security.

“As you hold a special place of influence within the nations’s ecosystem, it is imperative that you always promote and defend the peace and unity that we enjoy,” His Majesty said.

His Majesty said that it is the integrity and innate sensibility of the Bhutanese which has contributed immensely to our achievements as a nation, and we must retain these qualities even as we acquire new knowledge, skills, and methods.

“Climb higher on the shoulders of past achievements- your task is not to fill old shoes or follow a well-trodden path, but to forge a new road leading towards a brighter future,” His Majesty said.

His Majesty said that being a small landlocked country, with many resource limitations as well as challenges, we have always feared failure the most. As a result, with the best of intentions, a fail-safe system began to take shape.

“Today we realise that though the intentions were good, this has led to systemic constraints and posed unintended structural limitations,” His Majesty said.

His Majesty said that such a system served its purpose, but over time, it has outlived its usefulness. It may have stifled innovation, creativity and enterprise, and adversely affected leadership, accountability, and prudent resource management. These are problems we cannot ignore, and have to be addressed.

His Majesty said that jobless growth of economy is a ubiquitous problem, and not unique to Bhutan– our focus must, therefore, be on generating employment.

His Majesty said that in 2012, our foreign reserves, accumulated over generations and decades, was 674.5 million USD. In the same year, the social media app Instagram was acquired by Facebook for around 1billion USD.

“I was amazed to learn that Instagram had only 13 employees at the time of acquisition,” His Majesty said.

We have to figure out ways to use technology to solve problems– to improve governance, democracy, education, agriculture, to create jobs, enhance wellbeing, in healthcare, to make our cities safer and cleaner, and in various other ways that will benefit our people, His Majesty said.

His Majesty said that as a small country, we have to look beyond the domestic market for growth, and we have to look to technology to overcome traditional economic limitations of size and landlocked location.

His Majesty said that we have very talented Bhutanese, who, given the right training and preparation, can take advantage of technology and in this way, enable higher productivity and greater wellbeing.

His Majesty commended the progress that we have already made in some areas, but said that the pace of the change has to be stepped up. Now is the time to think about how to make use of emerging technological advancements such as Digital Identification, Artificial Intelligence, Blockchain, Internet of Things, Big Data, Quantum Computing, Machine Learning, Virtual Reality and Augmented Reality, etc, which present unlimited opportunities for Bhutanese.

“Being a small nation makes us a smart nation, this is not out of choice but out of necessity,” His Majesty said. “Technology is an indispensable tool that will be necessary to realise this aspiration.”