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He made the remarks after delegation-level talks with his Nepali counterpart K.P. Sharma Oli.

BIMSTEC comprises seven countries lying in the littoral and adjacent areas of the Bay of Bengal - Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand. "I am confident that the relation between Nepal and India will continue to deepen and widen in the coming days", remarked Gyawali.

"There is an atmosphere of hope and optimism in Nepal", Modi said, adding that India would always become partner to Nepal's progress.

Modi expressed his desire to travel to Lumbini, the birthplace of Lord Buddha in his future visit. "India stands shoulder-to-shoulder with the people of Nepal", Modi had said.

"We are looking into cross-border electricity and cross-border connectivity not only with Nepal but other neighbouring countries as well", he said.

He said both sides agreed to be committed towards the stated projects.

The Prime Minister said the agricultural ministers of the two sides will soon meet and start work on a road map for agriculture research, agricultural education and agriculture development.

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The much-awaited 900-megawatt hydropower project was inaugurated during a joint press conference organised at Battisputali-based Dwarika's Hotel here.

"An auspicious start to Day 2 in Nepal!" The Nepal Army cannon offered a 21-gun salute in the honour of the Indian Prime Minister.

This is the third visit of PM Modi to Nepal, and the first high-level visit from India since the formation of the new government in Nepal this year.

On Friday, Modi had said that all misunderstandings with Nepal are over and the bilateral ties are heading to a new high as New Delhi announced Rs 100-crore aid to develop Janakpur city.

He also greeted and interacted with people waiting at the temple premises.

Uttar Pradesh Chief Minister Yogi Adityanath on Saturday received the first batch of pilgrims who arrived in the newly-launched bus service between Nepal and India from Janakpur to Ayodhya.