A clash of priorities unfolded as the Public Accounts Committee recommended the government consider a railway link to Pugli in Samtse. The committee was presenting a review report on the Performance Audit of the operations of the State Mining Corporation. The report said it is to reduce transportation costs for dolomite exports, which currently rely heavily on truck and rail transport. Should the rail connection lead to Pugli to enhance Dolomite exports or Dhamdum Industrial Park to fuel industrial growth? While the government backs Dhamdum, the committee insisted on Pugli.
India has a huge market for dolomite, but transportation is the problem.
According to the committee’s review report, today, more than 300 trucks and trailers transport dolomite to India. They use the Dalgaon railway station in Birpara. Given the narrow stretch of road towards the station, it often causes traffic jams, irritates the locals and agitates strikes.
The State Mining Corporation dispatched more than two million metric tons of dolomite via the railway station last year. On average, it costs about Nu 370 M annually to transport dolomite from Pugli to the railway station.
Therefore, the committee said, it is crucial to connect Pugli with a railway link.
Public Accounts Committee’s Deputy Chairperson Loday Tsheten said, “Dolomite in our country is of excellent quality, and the reserves are substantial. Therefore, it is crucial to increase its exports. However, when I spoke with the CEO of SMCL yesterday, I learned that, since the 25th, we have only been able to export two truckloads of dolomite per day from Samtse. Regardless of how good our dolomite is, exporting it under these circumstances is extremely challenging”
But, for now, it is Dhamdum.
Infrastructure and Transport Minister Chandra Bdr. Gurung said, “Our government has requested railway links to both Pugli and Dhamdum in Samtse. However, they have asked us to prioritize one. Since all the industries in Jigmeling have relocated to Dhamdum and Norbugang, the focus has shifted towards prioritizing Dhamdum in Samtse. The final survey has been submitted to the Indian government, and feasibility studies are currently underway”
“The railway link in Samtse is being built, thanks to His Majesty, who requested it from the Indian government. Now that everything is ready to proceed in Samtse, if we suddenly say we don’t want it there but in Pugli instead, they might cancel the project altogether. Let the work in Samtse continue, and for Pugli, since it is important, we will discuss it with the Indian government,” added Tandin Wangchuk, Health Minister.
The Steel Authority of India and Tata Steel are the main buyers. India’s annual requirement of dolomite is about 10 million MT, out of which, 50 per cent is met from its domestic production and Bhutan is able to supply only about 27 per cent.
The speaker asked the government to consider the committee’s recommendation and seek necessary support.
Samten Dolkar
Edited by Tandin Phuntsho
