The Prime Minister also dwelled upon the successful elections conducted in Nepal at all three levels: federal, provincial and local levels.
"I am visiting Nepal at a very special time when elections have been successfully conducted here at federal, provincial and local levels. India stands shoulder to shoulder with the people of Nepal," Prime Minister Modi said whilst issuing a joint statement in Kathmandu along with his Nepal counterpart KP Sharma Oli.
Nepal PM Oli echoing the sentiments of PM Modi said, "Relations between neighbours are different from others. Neighbours have always been our top priority."
The two leaders also laid the foundation stone of Arun-III, a hydropower project in Kathmandu.
The visiting Prime Minister also underscored that though his relationship with Nepal is pretty old, however, it is only his third visit to the country as Prime Minister.
Nepal PM Oli stressed upon economic ties between the two countries by saying, "I requested Modi Ji to facilitate the exchange of demonetised currency notes held in the Nepali banking system and by the general public, at the earliest."
The Nepal Prime Minister also shared that the two sides have agreed to take concrete measures to realise the benefits of a new partnership for agriculture and connectivity by rail links and waterways and have agreed to address all matters by September 19, on "our" Constitution Day.
Earlier in the day, Prime Minister Modi was accorded with the guard of honour at the Tundikhel Army Parade Ground in Kathmandu.
The Prime Minister arrived in Kathmandu after attending the civic reception in the ancient and religious city of Janakpur.
On Saturday morning, Prime Minister Modi will be heading for Muktinath temple in Mustang District followed by prayers at Pashupatinath Temple in the capital.
After the visit to the temples, Prime Minister Modi is expected to engage with political leaders of various parties. He will attend the civic reception hosted by the mayor of Kathmandu and then depart for India on Saturday evening.
Prime Minister Modi arrived at the city of Janakpur on Friday at around 10:45 am (local time).
He was received by Prime Minister Oli after which Prime Minister Modi performed puja at the Ram Janaki Temple and flagged off the shuttle bus service linking Janakpur and Ayodhya
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