The visiting Prime Minister of Nepal has said that the political transition in the Himalayan state and Indian security concern besides economic cooperation came up for discussion in his talks with the Indian counterpart Dr. Manmohan Singh last evening.

Talking to a select group of journalists in New Delhi, Mr. Babu Ram Bhattarai said that his ongoing visit has created a new basis to take India-Nepal relations forward.

He said, for widening and deepening of economic cooperation a bilateral investment promotion and protection agreement were signed, addressing security concerns of Indian business houses.

India extended two hundred million dollar line of credit at concessional interest rate of 1.75 percent to Nepal for infrastructure projects. The repayment period of this loan is 20 years with Five years of Moratorium. The infrastructure projects include highways, airports, bridges, irrigation, railways and hydro power projects.

An MoU providing for Indian grant for controlling Goiter disease in Nepal was also inked. The two sides decided to set up a group to review the whole gamut of bilateral relations.

The group will submit its report within a year to both the governments.

The Home Minister P. Chidambaram and the Defence Minister A.K. Antony exchanged views with the Nepalese delegation.

Before leaving back home, Mr. Bhattarai will visit Haridwar tomorrow.