MeraNews Network, New Delhi: India will give a transitional Trade Support Facility of Rs 400 crore to Bhutan over a period of five years to strengthen bilateral trade and economic linkages.

In a joint statement in New Delhi on Friday after talks between Prime Minister Narendra Modi and Bhutan Prime Minister Dr. Lotay Tshering, the two sides reaffirmed their commitment to further strengthen co-operation in all areas of mutual interest. Modi and Dr. Tshering also discussed Bhutan’s priorities in the health sector. Prime Minister Modi stated that in line with Government of India’s ‘Neighbourhood First’ policy, India is firmly committed to partner Bhutan in its quest for development and economic prosperity.

Recognizing the importance of further expanding economic co-operation, the two Prime Ministers reviewed the implementation of ongoing bilateral hydro-power projects in Bhutan and agreed to expedite their implementation. They reiterated their commitment to jointly develop 10,000 MWs of hydropower generating capacity in Bhutan and in this regard discussed the Sankosh Hydropower Project.

Prime Minister Modi had announced a Rs 4,500 crore financial assistance to Bhutan for its 12th five-year plan.