India to provide Bhutan transitional trade support facility of Rs 400 cr

India will provide Bhutan a transitional trade support facility of Rs 400 crore over a period of five years to strengthen bilateral trade and economic linkages, Prime Minister Narendra Modi told his Bhutanese counterpart Lotay Tshering.

According to the joint statement, the two sides reiterated their commitment to jointly develop 10,000 MWs of hydropower generating capacity in Bhutan and in this regard discussed the Sankosh Hydropower Project.

"The two sides discussed Government of India's development assistance package for Bhutan's 12th Five Year Plan for the period 1 November 2018 to 31 October 2023," it said.

"The PM conveyed that India will provide grant assistance of Rs 4,500 crore towards Bhutan's 12th Five Year Plan, and a transitional trade support facility of Rs 400 crore over a period of five years to strengthen bilateral trade and economic linkages," it added.

The two sides also discussed Bhutan's priorities in the health sector.

The two prime ministers held detailed discussion on a wide range of bilateral and regional issues of mutual interest.

"They expressed satisfaction at the excellent state of bilateral ties of friendship and cooperation, which are marked by utmost trust, mutual understanding, goodwill, respect for each other's interests, and reinforced by robust people to people linkages and close economic and development partnership," the statement added.

Modi noted that in line with India's 'Neighbourhood First' policy, the country is firmly committed to partner with Bhutan in its quest for development and economic prosperity based on priorities of the people and Government of Bhutan, it said.