Druk Holding Investment (DHI) proposes to pay Nu 1.451 billion dividend to the government; Bhutan Chamber of Commerce and Industry (BCCI) faces scarcity of funds;
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  • Druk Holding Investment (DHI), the public sector umbrella organization in Bhutan, has proposed to pay a dividend of about Nu 1.451 billion to the government. This amount excludes Nu 2672.9 million it had paid as tax in 2009. Among the DHI owned companies, Druk Green contributed the highest dividend amounting to Nu 1.930 million, followed by Bhutan Power Corporation, which paid Nu 151 million. Among the DHI linked companies, Penden Cement contributed the highest at Nu 95 million, while Bhutan Ferro Alloys Ltd. Contributed Nu 27 million. Bank of Bhutan made a profit of about Nu 168 million.1 However, reports noted that the Bhutan Chamber of Commerce and Industry (BCCI) would have to raise more funds in order to sustain itself and its activities to support the private sector. This issue was discussed in the BCCI’s 25th annual general meeting on May 24. The total amount of collection through annual membership fee of BCCI has dropped from Nu 8.3 million in 2008 to Nu 7.07 million in 2009.2

    Meanwhile, according to the revised Foreign Direct Investment Policy released on May 21, 100 per cent foreign ownership will be allowed in projects related to high end education services, specialised health services, five star hotels and infrastructure development, which have a minimum cost of Nu 200 million. Hundred per cent foreign equity holdings will also be allowed for research and development projects with a minimum investment of 10 million and in the information technology sector with a minimum investment of Nu 5 million.3

    India’s Lok Sabha speaker, Ms. Meira Kumar, paid a three day visit to Bhutan from May 26-29, 2010, to address the fifth session of the Bhutanese parliament. Ms. Kumar led a parliamentary delegation from India, and announced the formation of a parliamentary friendship group to promote people to people relations between the two countries.4 In another development, Sri Lanka has donated USD 10,000 for the construction of a Buddha Statue in Bhutan.5

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