Nepal Prime Minister K.P. Sharma Oli left for New Delhi on Friday on a three-day state visit.
Oli is slated to hold delegation level talks with his Indian counterpart Narendra Modi on Saturday where the two leaders will jointly lay the foundation of the Arun III Hydroelectric Project developed by India.
The $1.5 billion 900 MW energy project by the Satluj Jal Vidyut Nigam is expected to be completed within five years.
Pacts related to agriculture, research and development; education and training; exploring the possibility of inland water navigation up to Indian ports from Nepal; and expansion of Indian rail up to Kathmandu from the countries' border has been agreed by the two sides.
Oli is likely to will take up various issues including the early execution of India funded projects in Nepal, implementation of the Mahakali Treaty, Motihari-Amlekhgunj pipeline, and clearance of pending line of credit for earthquake reconstruction.
Issues like cooperation in power and energy sector, cross-border connectivity, construction of transmission line, compensation to the Nepali citizens damaged caused by Kosi and Ganadak River inundation and flood control and energy banking will also be discussed.
In a statement on Thursday, the Ministry of Foreign Affairs said Oli will be accompanied by his wife, Radhika Shakya and a delegation of over three dozen members including Minister for Foreign Affairs Pradeep Kumar Gyawali, Minister for Industry, Commerce and Supplies Matrika Prasad Yadav, Minister for Physical Infrastructure and Transport Raghubir Mahaseth and Chief Advisor to the Prime Minister Bishnu Rimal.
He will be staying at the Rashtrapati Bhawan in New Delhi