Indian Prime Minister Narendra Modi and his Nepalese counterpoint KP Oli lay the foundation stone of the Arun 3 hydropower project. Photograph:( ANI )
Nepalese Prime Minister Khadga Prasad Oli and Indian Prime Minister Narendra Modi issued a joint statement in Kathmandu, Nepal on Friday.
"Relations between neighbours are different from others. Neighbours have always been our top priority," said Oli.
Prime Minister Modi is on a two-day visit to Nepal.
"We agreed to take concrete measures to realise the benefits of new partnership for agriculture and connectivity by rail links and waterways," said Oli.
"We have agreed to address all matters by September 19, our Constitution Day," he added.
Oli added that he had asked Modi to facilitate the exchange of demonetised currency notes held in the Nepali banking system and by general public at the earliest.
Nepal has $146 million in demonetised notes and wants India to change them.
"Nepal se mere bahut purana naata raha hai (my relationship with Nepal is very old)," said Modi.
"Lekin Pradhan mantri ke roop mein Nepal ki ye meri teesri yatra hai (But this is my third visit to Nepal as PM)," Modi added.
"I am visiting Nepal at a very special time when elections have been successfully conducted here at federal, provincial and local levels," said Modi.
"India stands shoulder to shoulder with the people of Nepal," he added.