Prime Ministers Narendra Modi of India and Sushil Koirala of Nepal met here Sunday afternoon for one-on-one talks, officials said.
This will be followed by delegation level discussions between the two countries.
A cabinet source told IANS that the political situation in Nepal is likely to dominate the Modi-Koirala meeting besides bilateral as well as regional issues.
Modi arrived here earlier in the day on a two-day visit. He will address Nepal's parliament later Sunday.