Thinley was received by Governor Ram Naresh Yadav and Chief Minister Shivraj Singh Chouhan at the Raja Bhoj airport. He will lay the foundation stone of the university tomorrow.
"Thinley described the setting up of the Buddhist University as a very good step," an official release said.
The Bhutanese prime minister, who is on a two-day visit, said his country will extend all possible assistance in this initiative and also gave his consent for setting up a cultural centre with the assistance of Bhutan at Sanchi, it said.
Chouhan also offered land to Thailand, Myanmar and Cambodia for raising study centres at Sanchi.
He informed the visiting premier that Madhya Pradesh's agricultural sector grew by 18 per cent and economy by 12 per cent last year.
Referring to Bhutan's Gross Happiness Concept, Chouhan said "only GDP is not enough to lead happy life, physical and mental peace, and happiness too are equally important".
More From This Section
Thinley said his country's concept of happiness is being praised by other countries. "Bhutan has evolved a new model of economic progress, which has been described as good by the United Nations," he added.
Chouhan, who hosted a lunch at his official residence, said he struck the idea of setting up the Buddhist university to make Sanchi a centre for peace, compassion and brotherhood.
Thinley, who addressed the gathering in Hindi, said though he got less opportunity to speak in the language, his spoken skills will improve by the time he returns to Bhutan.