Bhutan's foreign ministry has confirmed that India has given its approval to 39 new projects during the second round of talks on the 11th plan held in New Delhi.
Talks were held last week on the Project Tied Assistance (PTA) under which India has committed 28 billion rupees.
As per the agreement between the two countries, another 42 projects are to be considered after submitting more information.
It was agreed that projects above 500 million rupees shall require detailed project reports (DPRs).
Bhutan is to allocate 2.3 billion rupees or ten per cent of the value of the projects under PTA as co-financing, which will be reserved as cushion to meet project cost escalations.
In total, 81 projects will be taken up under the Project Tied Assistance.
India has already released 3.9 billion rupees to Bhutan for its 10th Plan's spillover activities, and one biliion rupees for its economic stimulus plan.
