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Delegation-level talks led by Prime Minister Narendra Modi and his visiting Nepal counterpart Sher Bahadur Deuba were underway on Saturday at the Hyderabad House in New Delhi.

They are expected to officially flag off the Kurtha-Jayanagar railway line.

Taking to Twitter, Ministry of External Affairs spokesman Arindam Bagchi said the two leaders will "review the progress in our partnership and discuss ways to further the India-Nepal cooperation agenda".

Ahead of the meeting, the spokesman said Modi and Deuba were "working together to take India-Nepal relations to newer heights".

Deuba started the second day of his trip by paying respects at Rajghat.

Shortly after his arrival on Friday evening, Deuba visited the BJP headquarters where he met party chief J.P. Nadda.

Later, Deuba also held talks with External Affairs Minister S. Jaishankar, with the latter saying the Nepali leader's visit "will further strengthen our close neighbourly ties".

This is Deuba's first foreign trip since assuming office in July last year.

He is being accompanied by his wife Arzu Rana Deuba, as well as a 50-member delegation comprising secretaries in the Ministries of Foreign Affairs, Water Resources, Health and Population, Agriculture and Physical Planning.