While stressing Nepal’s friendly ties with India, Prachanda said he expressed the view that trust and confidence were the pre-requisites of strong and sustainable friendly relations.
And to ensure this, “we should respect each other’s sensitivities and concerns in a spirit of good neighbourliness”.
Among the agreements inked was one on an Indian credit line of $750 million to Nepal for post-earthquake reconstruction. This is over and above the $1 billion aid that India announced following the devastating earthquake in the Himalayan nation in April last year that claimed over 8,000 lives.
The two sides also signed a memorandum of agreement (MoU) for project management consultancy services for upgrade and improvement of road infrastructure in Terai area of Nepal.
Another agreement was signed on the first amendatory dollar credit line for post-earthquake reconstruction projects in Nepal.
Foreign Secretary S Jaishankar described Prachanda’s visit as “very productive” and “warm”.
He said that talks focused on hydropower projects, including the Pancheswar project on rive Mahakali in Nepal.
Air connectivity, goods and power trade figured in the talks.
Tourism came up for discussion and the two sides explored the possibility of joint promotion of the Buddhist circuit.
Prachanda briefed the Indian side about the new Nepalese Constitution and the political processes in Nepal.
“He conveyed that the government is in the process of bringing all sections of Nepal on board for the constitution,” Jaishankar said
Ties between both sides had soured last year after the promulgation of the new Constitution in September, which Madhesi and Janjati people living in the Terai region, bordering India, said ignored their rights. A five-month-long border blockade by the Madhesis, which Kathmandu blamed on India, starved Nepal of essential fuel and other supplies from India and saw bilateral ties nosedive sharply.
The Maoist-led government of Prachanda assumed power last month after the ouster of KP Sharma Oli as Prime Minister.
India is hoping to bring back the shine in ties with Prachanda at the helm.
Earlier on Friday, Prachanda was accorded a ceremonial welcome at the Rashtrapati Bhavan.
Following this, External Affairs Minister Sushma Swaraj called on him at the Rashtrapati Bhavan.
In the afternoon, Finance Minister Arun Jaitley and Minister of State for Power Piyush Goyal also called on the Nepal Prime Minister before he made a call on President Pranab Mukherjee
China’s President Xi Jinping is expected to visit Kathmandu in October, while Indian President Mukherjee is visiting in early November.