Almost four months later, Modi said that major agreements on hydropower that were stuck for years were realised as he arrived here for the 18th Saarc Summit on Tuesday.

The first day of his visit was centred on cementing ties with Nepal where he talked about the accomplishments. Nepal and India signed around a dozen pacts and memoranda of understanding, including those on Arun III and $1 billion soft loan.

In what is seen as a major breakthrough in hydropower cooperation, the two neighbours closed the project development agreement (PDA) on 900MW Arun III Hydropower Project.

The Power Trading Agreement, PDA on the 900MW Upper Karnali, and progress in the Pancheshwor Multipurpose Project are other major developments since August.

Addressing a function to inaugurate the Trauma Centre adjacent to Bir Hospital, Modi said obstacles that held up works for the last three decades had been removed. The Indian PM did not forget to complement his Nepali counterpart, political parties and officials “for removing obstacles and speeding up work.”

“It took six years for us to sign the PDA,” said an official of Satluj Jala Vidyut Nigam—the Arun III developer—during the PDA signing at the Prime Minister’s Office. “It would not have been possible had Modi not been in power.”

Officials at the Energy Ministry and the Investment Board Nepal (IBN) have also noticed a remarkable flexibility on the Indian side since Modi was elected the PM. “Be it PTA or PDA, we’ve found that them [Indian side] more receptive to us,” said a senior official at the Energy Ministry.

The final agreement on the $1 billion line of credit that Modi had announced in August was also signed on the evening.

The Nepal government is planning to use the soft loan for developing the Budhigandaki Hydroelectricity Project, Mahakali III Irrigation Project, Koshi Pump Canal, and a multi-lane motorable bridge over Mahakali River in Mahendranagar.

Modi also raised themes of connectivity and cultural ties. As promised earlier, he said he had asked Indian telecom companies to reduce call tariffs from India to Nepal by 35 percent and also requested Nepali telecom companies to cut the charges.

Before flagging off the direct bus service between Kathmandu and New Delhi at Singha Durbar, he said he had asked his officers to explore the possibility of the buses being wi-fi enabled.

In a major relief for the Nepalis working in India and Indian tourists coming to Nepal, Modi announced that people would now be allowed to carry IC 500 and 1,000 banknotes into Nepal. Indian banknotes of those denominations had been banned in Nepal.

“This will be my second visit to Nepal within four months, which reflects the importance we attach to our unique and special relations with Nepal,” Modi said in a statement before coming to Kathmandu.

“We also hope to conclude some concrete agreements in the areas of connectivity and development cooperation.” Having signed around a dozen pacts on Tuesday, Modi has certainly kept his word.