India and Nepal held bilateral talks after Prime Minister Narendra Modi met his Nepalese counterpart Pushpa Kamal Dahal "Prachanda" here on Friday.
"Reviewing the full spectrum of #IndiaNepal relations. Both PMs lead delegation level talks at Hyderabad House," External Affairs Ministry spokesperson Vikas Swarup tweeted.
Some agreements are expected to be signed following the talks.
Prachanda arrived here on Thursday on a four-day visit to India.
The new Maoist-led government in Nepal assumed power early last month after the ouster of K.P. Sharma Oli as Prime Minister.
Earlier on Friday, Prachanda was accorded a ceremonial welcome at the Rashtrapati Bhavan here.
Following this, External Affairs Minister Sushma Swaraj called on him at the Rashtrapati Bhavan here.
Apart from Sushma Swaraj, Prachanda is scheduled to meet Finance Minister Arun Jaitley and Minister of State for Power Piyush Goyal later in the day before calling on President Pranab Mukherjee.
He will also attend a joint business event organised by Assocham in the evening.
In an interview with state broadcaster Doordarshan, Prachanda said that the Nepal-India relationship was a unique one and that his visit was aimed at building "trust and confidence" between the two sides.