Prime Minister Narendra Modi on Friday announced a Rs 4,500 crore financial assistance to Bhutan for its 12th five-year plan after holding wide-ranging talks with his Bhutanese counterpart Lotay Tshering.
In his media statement, PM Modi said hydro power cooperation with Bhutan is a key aspect of bilateral ties and that work on the Mangdechhu project will soon be completed.
PM Tshering arrived in New Delhi on Thursday on his first foreign visit after taking charge as the prime minister of Bhutan last month following his party's victory in the general elections.
PM Modi said he has assured the Bhutanese prime minister that India will continue to play an important role in Bhutan's development.
PM Tshering on his part noted that PM Modi was the first head of state to to congratulate him on his electoral victory. He also thanked India for its continued support to his country's developmental needs.
The new five-year plan of Bhutan began this year and will continue till 2022.
Earlier in the day, PM Tshering was accorded a ceremonial welcome at the Rashtrapati Bhavan.
External Affairs Minister Sushma Swaraj also called on the Bhutanese premier this morning.
Ms Swaraj congratulated PM Tshering on the assumption of the high office of Bhutan's prime minister and the two leaders had a "warm exchange of views" on important aspects of the bilateral relationship, Ministry of External Affairs Spokesperson Raveesh Kumar said.
PM Tshering also laid a wreath at Mahatma Gandhi's 'samadhi' at Rajghat.