New Delhi:
Was the Indian government's decision to stop gas subsidies to Bhutan a punishment for the Himalayan kingdom's growing closeness to China, or a horrible mistake by the Indian Oil Corporation?
Bhutan is struggling with the question. As the country's budget lapsed on June 30, the Indian Oil Corporation, bypassing the Indian Foreign Ministry, wrote to the Bhutanese authorities, saying the subsidies were being stopped for now.
Since the volume of subsidy, at a mere Rs 200 crore, is considered chickenfeed for a nearly two-trillion dollar Indian economy, the move has not gone down well in the Himalayan country which depends on India's aid.
In Bhutan, the move has been interpreted as a carrot-and-stick policy of a sulking New Delhi, given the fact that Bhutan is on its way to establish full-fledged diplomatic relations with China for the first time.
The withdrawal of subsidy puts Bhutan in the category of Nepal, Maldives, Sri Lanka and Bangladesh where India is often seen to be taking sides in domestic politics.
Officials in New Delhi claim the move has nothing to with politics but with a smaller budget for such subsidies and the need to streamline them. They, however, admit that the timing has been bad, with Bhutan holding elections tomorrow.
Sources in New Delhi say the Indian government will look into the issue once the new government is formed in Bhutan.