Prime Minister Manmohan Singh will be the first international leader to visit Bhutan, the "youngest" democracy in the subcontinent when he undertakes a two-day visit, beginning on Friday.
The visit coincides with the 50th anniversary of the month-long tour of Bhutan by then Prime Minister Jawaharlal Nehru when the two countries laid the foundation for closer ties.
Energy cooperation will be the hallmark of the visit during which Singh will dedicate to the Bhutanese people the 1020 MW Tala hydroelectric project and lay the foundation stone for the 1095 MW Punatsangchhu hydel power plant.
India has been assisting the development of the hydroelectric sector in Bhutan which has a potential to generate 30,000 MW power.
Bhutan sells all its surplus electricity, generated from its existing hydel power plants, to India, which plans to tap 5,000 MW of power by 2020.
Singh will hold wide-ranging talks with his Bhutanese counterpart Jigme Y Thinley on issues of mutual interest, including India's development co-operation with the Himalayan kingdom.
The prime minister will also meet 28-year-old King Jigme Khesar Namgyel Wangchuck and his father, the former King Jigme Singye Wangchuck.
During the visit, the prime minister is expected to announce a substantial contribution to the country's 10th Five Year Plan.
Singh will also address a joint session of the first elected parliament of Bhutan.
The prime minister will get the first opportunity to interact with the new leadership and take forward the decades-old relations characterised by close consultations, maturity, complete trust and mutual understanding.
The prime minister's discussions with the top Bhutanese leadership would focus on looking at the entire relationship and various measures to carry it forward, at a time of transition within Bhutan.
India and Bhutan had revised the Friendship Treaty in February 2007 when the present King Jigme Khesar Namgyal Wangchuck visited India as crown prince.
The treaty is an updated version of a similar treaty signed by Nehru in 1949.
The new treaty "for the first time, reflects and articulates the desire of both sides to enhance our economic cooperation," Foreign Secretary Shivshankar Menon had said.
"Our commitment to continuing this sort of relationship remains very firm and the prime minister's visit will be one more chance to underscore that commitment, also at a time when Bhutan is undergoing her own transition," Menon said.
This year has been special for Bhutan as it marked the coronation of the present king and the kingdom took first steps towards democracy by successful conduct of elections.
"It is the centenary year of the Wangchuk dynasty and it will be the first trip by the Indian prime minister to the youngest democracy in South Asia after first elections were held there in March," Menon said.
Prime Minister P V Narasimha Rao had visited Bhutan in 1993.
