India and Bhutan on Saturday discussed a wide range of bilateral issues as the visiting King Jigme Singye Wangchuk met Prime Minister Manmohan Singh here.
A host of issues, particularly cooperation in power sector, were discussed during the meeting.
India and Bhutan have cooperation in power sector and efforts are on to enhance this.
The two countries on Friday signed an agreement for purchase of power from Bhutan's 1020 MW Tala hydro-electric project.
The Protocol to the Inter-governmental Agreement signed on March 5, 1996 on the setting up of the Tala Hydro-electric Project, lays down the commercial arrangements for the purchase of Tala power by India.
The Tala Hydro-electric Project, with 1020 MW capacity, is the largest bilateral cooperation project undertaken by India in the field of hydro-power in a foreign country.
The two countries also signed an Agreement on Trade, Commerce and Transit, which provides for continued free trade arrangements between the two nations with simplified procedures and additional facilities and routes for Bhutan's transit trade with third countries.
The Agreement, which will remain valid for ten years, was signed by Commerce Minister Kamal Nath and his Bhutanese counterpart Lyonpo Yashey Zimba.
Wangchuk is accompanied by his wife Trongsa Penlop Dasho Jigme, Crown Prince Khesar Namgyal Wangchuk and Trade Minister Zimba.
A number of projects in Bhutan are being run with the help of India, particularly in the hydro-power sector.