India announces Rs 4,500 cr assistance to Bhutan

New Delhi: Prime Minister Narendra Modi on Friday announced a Rs 4,500-crore financial assistance to Bhutan to help the country implement its 12th five-year plan, after he held wide-ranging talks with his Bhutanese counterpart Lotay Tshering.

In his media statement, Modi said he has assured the Bhutanese prime minister that India, as a "trusted friend", will continue to play an important role in Bhutan's overall development.

The prime minister also thanked the Bhutanese leader for deciding to introduce in Bhutan the Indian RuPay card which is a debit and credit card payment network.

On his part, Tshering said the main mission of his visit here was to take Indo-Bhutan ties to greater heights, adding Prime Minister Modi has given him assurance of helping Bhutanese traders hit by the implementation of GST in India.

"We are very very happy that Prime Minister Modi ji has personally committed to be with us, to support us...Government of India has extended full support for our XII Five Year Plan and also to our traders who are being affected by the GST that has come into action in India," the Bhutan PM said.

In the talks, the two sides focused on further ramping up the already close bilateral relationship, particularly in the areas of hydro power and trade.

The two sides are understood to have also deliberated on security cooperation. Bhutan is a strategically important neighbour for India and both the countries have robust military cooperation which was reflected during Doklam face-off.

"India will contribute Rs 4,500 crore in Bhutan's 12th five-year plan," Modi said. The new five-year plan of Bhutan began this year and will continue till 2022.

Identifying hydro power cooperation with Bhutan as a crucial aspect in the bilateral ties, Modi said work on the Mangdechhu project will soon be completed. Mangdechhu is a 720-MW hydroelectric project (HEP) on the Mangdechhu River in central Bhutan,

which is being implemented by India.