At the end of delegation level talks between Prime Minister Narendra Modi and his Bhutanese counterpart Prime Minister Lotay Tshering, it was announced that it will be contributing Rs 4,500 crore to Bhutan’s 12th Five-Year Plan. Also, as reported by FE Online earlier, both sides also reviewed the progress of various hydro-power projects in that country.

In a joint address to the media at the end of talks with the his Bhutanese counterpart Prime Minister Tshering, Prime Minister Modi said that “I have assured the Prime Minister that India will continue to play the role of a trusted friend and partner in Bhutan’s development. This contribution will be made according to Bhutan’s needs and priorities.”

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The visit is taking place on the golden-jubilee year of India-Bhutan diplomatic ties. Bhutan’s 12th Five-Year Plan runs from 2018 to 2023. Modi said that development of hydro-power projects is an important part of the long history of India’s aid to Bhutan. “Today we reviewed our aid for all related projects in this important sector,” he said.

The Prime Minister said that the two sides have agreed on the electricity tariff rates on the 720-MW Mangdechhu hydro-power project which is expected to be completed soon. Besides the presence of several institutional mechanisms between India and Bhutan in areas like security, border management, trade, economy, hydroelectricity, development cooperation and water resources, New Delhi is the main development aid partner to the Himalayan neighbour.

Three hydro-power projects in Bhutan with a total capacity of 1,416 MW, which are operational, have been done by India. Out of this, three-fourth of the power generated is exported to India and the rest is used for domestic consumption.

In his address Modi said that the work on other hydro power projects is progressing well, even as the two sides are trying to expedite these projects. Cooperation in the space sector is another area where the two countries are working together and a ground station will be soon be developed in Bhutan by the Indian Space Research Organisation (ISRO) to reap the benefits of the South Asian Satellite.

“Once completed, this will help in weather information, tele-medicine and disaster relief work in remote areas of Bhutan,” Modi added. Bhutan has decided introduce the India-launched RuPay cards, which is expected to boost people-to-people ties between the two countries. The visiting leader Prime Minister Lotay Tshering in his address said that the main focus his visit is to take the bilateral relationship to greater heights. “We are very happy that Prime Minister Modi is personally committed to be with us, to support us and in that light we all heard that the government of India has again extended full support for our 12th Five-Year Plan,” he said.

According to him, this will help traders in Bhutan who have been affected by the Goods and Services Tax (GST) that has been introduced in India. He also expressed his appreciation on India’s support during the negotiations for tariff of the Mangdechhu Hydro-power project and expressed the hope that work on the 2,560-MW Sunkosh project will start soon. And invited Modi to Bhutan to inaugurate the Mangdechhu project. Tshering arrived here on Friday on a three-day visit to India, his first official trip abroad after assuming office in October.

Earlier in the day, external affairs Minister Sushma Swaraj called on visiting Bhutan Prime Minister Tshering, where both talked about important aspects of the India-Bhutan relationship.