Guwahati, July 29: The Darranga Mela is all set for a new lease of life with New Delhi clearing a Dispur proposal for setting up a border trade centre at Darranga, along the Indo-Bhutan border, 50 km from here.

State industry minister Bhubaneswar Kalita said the Darranga trade centre, to be connected with the southern Bhutan district of Samdrup Jongkhar bordering Nalbari district, is “aimed at reviving the historic trade ties between Assam and Bhutan which dates back to the 19th century”.

Set up in 1865, following a trade pact signed between the neighbours, the Darranga Mela has played host to annual fairs of both Bhutanese and Indians. Initially, the fair was held between November and March. However, growing insurgency has put the market on the verge of closure.

Earlier, Bhutanese traders used to come down in large numbers to the Darranga market. Now it is the bi-weekly market inside Samdrup Jongkhar town across the border that has become the hub for Indian traders.

The first formal agreement on trade and commerce between India and Bhutan was signed on January 17, 1972. It was renewed periodically with mutually-agreed modifications. The present agreement, signed on February 28, 1995, is valid for 10 years. The three approved land customs stations on the Indo-Bhutan border are Darranga, Hatisar and Ultapani.

However, following a spurt in militant activities, the royal Bhutan government imposed restrictions on the movement of vehicles and Bhutanese people into Assam, affecting trade.

Following pressure from Tamulpur legislator Biswajit Daimary, Nalbari district administration officials took up the matter with their Bhutanese counterparts and assured them of security for Bhutanese people on this side of the border. However, the Bhutan government’s efforts to cut supply lines to Ulfa camps in the kingdom has restricted the movement of Bhutanese traders only to Darranga market, but to Samdrup Jongkha also.

Kalita said a border trade centre would be set up at Mancachar while 80 per cent of work at Sutarkandi trade centre had been completed. He hoped that these two centres would promote trade with Bangladesh. He said the government was also pinning its hope on a number of trade enquiries from both foreign and domestic investors. He added that they had received investment proposals to the tune of Rs 600 crore.