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,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.

Tshering arrived here on Thursday on his first foreign visit after taking charge as PM of the Himalayan nation last month following his party’s victory in the general elections.

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 development.