New Delhi, Aug 31 (IANS): Prime Minister Manmohan Singh Saturday discussed issues of mutual interest with Bhutanese Prime Minister Tshering Tobgay here.

The meeting, also attended by External Affairs Minister Salman Khurshid, held at the official residence of the prime minister.

Prior to the official meeting, the prime minister welcomed the Tobgay and the delegation accompanying him.

This is the first foreign visit by Tobgay after he become the prime minister of the Himalayan nation following the victory of his People's democratic Party in the second national election held in July.

During Tobgay's six-day stay in India, which started Friday, Indian minister would call on him to discuss political, security, developmental, economic and cultural cooperation issues.

Bhutan is seeking substantial financial assistance from India including Rs.800 crore (Over $100 million) to tide over its cash crunch to finance its small developmental projects.