Thimphu | Prime Minister Narendra Modi and Bhutanese King Jigme Khesar Namgyel Wangchuck on Tuesday held wide-ranging talks during which they discussed cooperation in sectors such as energy, capacity building, connectivity, technology, defence and security.

After the delegation-level talks, the two leaders jointly inaugurated the 1020 Punatsangchhu-II hydroelectric project, developed jointly by India and Bhutan.

"Had a very good meeting with His Majesty Jigme Khesar Namgyel Wangchuck, the King of Bhutan. We covered the full range of India-Bhutan relations," Modi said in a post on social media.

"We discussed cooperation in sectors like energy, capacity building, connectivity, technology, defence and security. India is proud to be a key partner in Bhutan's development journey," he added.

Prime Minister Modi arrived in Bhutan on Tuesday for a two-day visit.

The ties between India and Bhutan have been on an upswing.

In September, India unveiled its plan to build two cross-border train links with Bhutan at a cost of over Rs 4,000 crore, in the first such railway connectivity projects with the Himalayan nation.

Under the initiative, new rail links will be set up between the Bhutanese cities of Gelephu and Samtse and Kokrajhar in Assam and Banarhat in West Bengal.