India and Nepal have decided to further expand and consolidate the close multi-faceted relationship between the two countries including in the area of trade and security.

A joint statement, issued in New Delhi yesterday at the end of the Nepal's Prime Minister Baburam Bhattarai's three-day visit to India, said that both sides have decided that all the bilateral and institutional mechanism is revitalised and convened regularly.

The two sides also decided to convene early meetings of the Joint Ministerial Commission on Water Resources and Home Secretaries. The statement said, Mr. Bhattarai briefed Prime Minister Dr. Manmohan Singh about the ongoing peace process in Nepal as well as drafting of a new Constitution.

Nepal's Prime Minister appreciated the Indian government and its people for their support and expressed hope to receive India's goodwill and understanding for Nepal's peace process.

The two sides discussed security concerns related to open border between the two countries.

The Nepalese side assured that it will not allow its territory to be used for any activity against India and the Indian side also gave the same assurance to the Nepalese side.

The Nepalese side assured that it will take further measures for creating and promoting an investor-friendly and enabling business environment to encourage Indian investment in Nepal.

The two Prime Ministers noted with satisfaction that the two sides have considered and reached agreement on the text of the Double Taxation Avoidance Agreement (DTAA) and committed to sign it at the earliest on completion of the respective legal procedures.