Prime Minister Narendra Modi, following his talks with PM K P Oli (who is here on his maiden trip overseas after being re-elected PM), said India would also help Nepal in the field of agriculture through organic farming, soil testing and education in farming.
Nepalese Prime Minister K P Sharma Oli today asserted that Nepal had not allowed its land to be used against the sovereign interests of India and that it was firm in its resolve to maintain this.
The objective, it said, is to expand "connectivity" between the two neighbours and "enhance people-to-people linkages and promote economic growth and development".
To a question as to why he chose to visit India first before China after taking over as prime minister in February, Oli said, "India invited me and so I visited India".
Kathmandu and New Delhi on Saturday inked agreements that promise connectivity to land-locked Nepal over rail and river as the neighbours sought to move away from the stumbling blockade of 2015-16 that put a spoke in the bilateral relationship.
The connectivity proposals are significant and come almost two years after China in March 2016 agreed to construct a strategic railway link with Nepal through Tibet to reduce the Kathmandu's total dependence on India.
The two Prime Ministers agreed that the visit has imparted new dynamism to the multifaceted partnership between the two countries. But India surrounds Nepal on three sides and provides oil and other goods to the country. He spoke about his expectations from Nepal and how he hopes to receive co operation from the neighbouring country, India.
This will be followed by the finalization of the implementation and funding modalities of the project based on its detailed project report. The PM made the announcement in a joint press conference with Nepal PM KP Oli.More news: Formula One: Deputy PM wants grid girls at Russian Grand Prix
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There are three other railway projects in the pipeline - New Jalpaiguri-Kakarbhitta, Nautanwa-Bhairahawa and Nepalgunj Road-Nepalgunj.
Earlier in the day, speaking to reporters after the ceremonial reception at the Rashtrapati Bhavan, Oli said the "historical" and "renewed" friendship between India and Nepal was oriented towards the future and the bilateral ties had evolved according to the "needs of times".
It is likely that India will buy a large chunk of the power that is produced by the Arun III project, being built by the Sutlej Jal Vidyut Nigam (SJVN), a public sector undertaking, much on the lines of its hydro cooperation model with Bhutan.
He had earlier served as the Nepal's prime minister from 2015 to 2016 during which Kathmandu's ties with New Delhi had strained.
In his statement to the media, Modi assured Oli that India would stand with Nepal as a "reliable partner" and appealed to the Nepalese leader to ensure that the open border between the two countries was not misused. This new initiative would enable cost effective and efficient movement of cargo.
Modi had yesterday met the Nepalese prime minister at the Prime Minister's official residence here. Supplies from India were disrupted due to protests and political instability.
"Friendship is very important". They are more developed and more advanced than us. "We wish to take forward our relationship on the basis of goodwill, mutual trust and mutual benefit". Kovind expressed confidence that under Oli's leadership, Nepal would chart a new course of rapid socio-economic transformation for its people.