Prime Minister Narendra Modi and his Nepalese counterpart Sher Bahadur Deuba on Saturday inaugurated a cross-border railway network, a power transmission line and launched India's RuPay payment card in Nepal after they vowed to significantly expand the bilateral ties in wide-ranging talks.

The two sides also inked four pacts to expand cooperation in areas of railways and energy.

In his statement to the media, Deuba said the boundary issue between the two countries was discussed and he urged Modi to resolve it through the establishment of a bilateral mechanism.

Modi said the friendly ties between India and Nepal are unique and such a relationship is not seen anywhere else in the world.

He said India has been and will continue to remain a firm companion in Nepal's journey for peace, prosperity and development.

Modi said the joint vision statement between the two sides on power cooperation will prove to be a blueprint for future cooperation in the sector.

He said it was agreed on the greater participation of Indian companies in Nepal's hydropower development plans.

Following the talks, the two prime ministers flagged off the inaugural run of the first broad-gauge passenger train between Jaynagar in Bihar and Nepal's Kurtha.

The Nepalese prime minister said Nepal's relationship with India is "highly important".

Deuba, accompanied by a high-level delegation, arrived in New Delhi on Friday on a three-day visit.

It is Deuba's first bilateral visit abroad after becoming prime minister in July last year for a fifth time following a spell of political turmoil in Kathmandu.

Nepal is important for India in the context of its overall strategic interests in the region, and the leaders of the two countries have often noted the age-old "Roti Beti" relationship. PTI MPB

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