Kathmandu, May 11 Indian Prime Minister Narendra Modi on Friday said all misunderstandings with Nepal are over and bilateral ties are heading to a new high.
Stressing that the recent election and its outcome would be written in golden words in Nepal's history, the Indian Prime Minister said ties between India and Nepal are special and "I am visiting at a special time".
He made the remarks after the delegation-level talks with his Nepali counterpart K.P. Oli.
"India stands shoulder to shoulder with the people of Nepal. India-Nepal ties are above inter-governmental relations. It is more like a family," said Modi.
"I, the Indian government and the Indian people heartily felicitate the Nepali people for the progress made under federal democratic setup."
In a bid to reach out to the new communist government in Nepal, Modi held extensive discussion with his counterpart and senior government officials to better the bilateral ties that is all set to reset after New Delhi's repeated attempt to cultivate Oli-led government in Nepal in the recent months.
After the talks, Modi and Oli categorically reached some understandings.
Meeting Oli twice in less than two months, Modi assured him that all genuine and necessary grievances of Nepal would be addressed in a time-bound manner.
In this respect, Nepal and India have reached half dozen major understandings during the two-day state visit of Modi that is expected to give momentum in bilateral ties in future.
However, India remained silent on exchanging banned Indian notes parked in various financial and banking institutions and held by general people, and on Nepal's request to add four additional air routes via India.
Modi and Oli held one-one-one and delegation-level talks where both sides agreed to resolve outstanding issues before September 19 that marks Nepal's Constitution Day.
India is ready to partner with Nepal for cross border connectivity and agreed to commence survey to link Kathmandu with the Indian Railways' survey soon.
A team of India experts will begin the survey for the feasibility of the rail linkages and India is also sending a team of experts to conduct feasibility survey for inland water navigation from Nepal to India.
"We are connected with Nepal through rail, water, transmission line, petroleum pipeline," Modi told the media.
He also announced a gift of India-made indigenous radiotherapy machine for Bhaktapur-based cancer hospital.
Both sides also agreed to dispatch a joint technical team to resolve the recurrent inundation problem along the Nepal-India border.
Both Prime Ministers agreed on expansion on cooperation in agriculture. The first meeting of agriculture ministers from Nepal and India would be held soon to chart out a roadmap on agriculture research and development, education and organic farming.
The two leaders also agreed for an early meeting for the construction of 46,00mw Pancheshwor Multipurpose Project jointly by India and Nepal.
"We have evaluated the partnership between Nepal and India. Some of the projects have gained progress and some are in the process of achieving good progress. We have agreed to review compherensively the trade and transit treaty," said Modi.
"We are connecting through waterways, railways, roadways, transmission line and oil line, and will cooperate in areas of security and defense."
The much-awaited 900-megawatt Arun III Hydropower Project was inaugurated amidst a joint press conference organised at Battisputali-based Hotel Dwarika's in the Capital.
The Investment Board Nepal (IBN) on Thursday had granted an electricity generation licence to SJVN Arun III Power Development Company to generate power from the Arun III project located in eastern Nepal.
Earlier, in the day Modi was conferred with the guard of honor at a ceremonial function at Nepal Army Pavilion. The Nepal Army cannon offered a 21-gun salute in the honor of Indian Prime Minister.