Nepal PM calls on the President Kovind

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"Today, we have reviewed the progress in various such connectivity projects and agreed to expedite their implementation", PM Modi said.

Modi said both sides would like to jointly start a new rail link connecting Kathmandu with India which will be gamechanger for the Himalayan State.

India has promised greater support to its neighbor Nepal in a meeting between their prime ministers.

According to Oli, Nepal urgently needs to develop hydropower as an alternative to the highly expensive petroleum that it fully imports, most of it from India.

India and Nepal have close ties in defence and security and will work together to stop the misuse of their open borders, he said.

India and Nepal on Saturday resolved to take their bilateral relations to newer heights on the basis of equality, mutual trust, respect and benefit. He received a ceremonial welcome at the Rashtrapati Bhavan today in presence of President Ram Nath Kovind and Prime Minister Narendra Modi.

During his earlier tenure, Oli sealed deals with Beijing in 2016 to use Chinese roads and ports, seeking to reduce Nepal's dependence on India for trade and transit.

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Welcoming Mr Oli to India, the President said he was happy to note that this was his first visit overseas after his appointment as the Prime Minister of Nepal.

Modi had on met Oli at the Prime Minister's official residence in the national capital.

Modi also accepted an invitation from Oli to visit Nepal this year. We have developed our friendship according to time with a objective to eradicate poverty, improve life standards.

In a landmark decision, India will assist Nepal in developing inland waterway on its rivers that will connect with Indian waterways and provide Nepal additional access to sea. Our friendship is historical, renewed, developed and is very fruitful.

India's indifferent response to the blockade by the United Democratic Madhesi Front had triggered speculation about New Delhi's tacit support for the protest against Nepal's Constitution for not factoring in proportional representation to the Madhesis who have Indian ancestry. We want to create a model relationship, which makes not only us but our posterity equally proud of our accomplishment. "Overall there was a forward looking focus as there are cultural, economic and political similarities between the two countries, " he added. The requisite procedures and modalities for including inland waterways as an additional means of transport in the Protocol to the Treaty of Transit between India and Nepal will be worked out soon. But within months, Nepali Congress leader Sher Bahadur Deuba had taken over from Prachanda as Prime Minister, and by November he had cancelled the dam project, saying the agreement to build it had been done in an "irregular and thoughtless manner".

Oli arrived here on Friday on his first foreign trip after he returned to power for a second term in February.