Nepalese PM hails India 'new era'

Prachanda called for a 'revolutionary change' in relations

Former Maoist rebel leader and new Nepalese Prime Minister Prachanda has hailed a "new era" in his country's relations with India.

He was speaking during his first official visit to India since his April general election victory.

The prime minister reassured his hosts that Nepal was not moving closer to China at the expense of India. He said good relations with Delhi were "vital".

Nepal has had a prickly relationship with its larger southern neighbour.

"I am going back to Nepal as a satisfied person. I will tell Nepali citizens back home that a new era has dawned," the prime minister said.

"The time has come to effect a revolutionary change in bilateral ties. On behalf of the new government, I assure you that we are committed to make a fresh start."

'Greater determination'

Prachanda was speaking after holding wide-ranging talks with Indian Prime Minister Manmohan Singh on Monday.

The Maoist leader held a string of meetings

He said that "new Nepal needs to develop new relations with India".

The former Maoist leader said both countries are linked by geography, history and religion and had to build on their relationship with "greater determination".

He invited India to build a rail link in Nepal that would connect the eastern and western parts of the country.

The immense hydro-power potential of Nepal should be exploited, he said, to help India meet its power needs.

Prachanda also promised new "business-friendly policies" as he urged Indian companies to invest in agriculture, tourism and infrastructure in his impoverished nation.

Correspondents say that his Maoist party is wary of India. Its ideological soul mates, known as Naxalites, are waging an insurgency across a swathe of India.

Nepal's Maoist leaders spent a lot of time in India while still underground.