The MoU aims at taking forward India-Bhutan friendship treaty and provide an umbrella for educational, scientific and technical research and environment protection.
"The Union Cabinet chaired by Prime Minister Narendra Modi today approved signing of an MoU between India and Bhutan on technical cooperation in the field of capacity building, benchmarking and bilateral exchange in infrastructure engineering.
"The MoU is furtherance to India-Bhutan friendship treaty signed in 2007 and will provide an umbrella for educational, scientific and technical research and environment protection which are also stated aim of the India-Bhutan foundation established in August 2003," an official release said.
The CPWD also expects to garner some road construction projects in Bhutan, the release said.
During the PM's visit to Bhutan in June 2014, the two sides agreed to continue close coordination and cooperation in areas relating to their national interest, it noted.
There is already ongoing Hydro Power Cooperation between the two countries which provides an "exemplary template for mutual cooperation", the release said.