New Delhi, Jun 1 (IANS): Prime Minister Narendra Modi and his visiting Nepalese counterpart Pushpa Kamal Dahal, 'Prachanda', are holding bilateral talks here on Thursday.

The meeting between the two leaders at the Hyderabad House is currently underway.

Prachanda, who arrived in New Delhi on Wednesday on a four-day official visit to India at Modi's invitation, paid tributes to Mahatma Gandhi at Raj Ghat on Thursday morning.

This is Prachanda's first official visit to a foreign country after assuming office in December last year.

Official sources said that after the talks between Modi and his Nepalese counterpart, several agreements will be signed, related to cooperation in various sectors.

Later in the day, Prachanda will call on president Droupadi Murmu and Vice President Jagdeep Dhankhar.

India-Nepal bilateral relations have significantly strengthened in the last few years in all areas of cooperation, official sources said.

Prachanda will visit Ujjain and Indore on Friday.

According to the government in Kathmandu, Prachanda is being accompanied by his daughter Ganga Dahal and a high-level official delegation comprising Foreign Minister Prakash Sharan Mahat, Finance Minister Shakti Basnet, Energy, Minister Prakash Jwala, Physical Infrastructure & Transport Minister Ramesh Rijal, Chief Secretary, Secretaries, and senior government officials.

He will return home on Saturday.