This was conveyed by External Affairs Minister Salman Khurshid during his call on Nepal President Ram Baran Yadav, who in return thanked him for India's development assistance provided to his country.
"Khurshid called on President of Nepal earlier today. He welcomed President Ram Baran Yadav as a great friend of India whose support had played a crucial role in strengthening India-Nepal relations," official sources said.
The minister also informed the Nepalese President about efforts being made to supply additional electricity to Nepal during the lean season. "In this context he said that short term measures to augment grid connectivity of 40- 55 MW were completed and we were working on plans to further increase this is in the medium term," the sources said.
The sources also said that there was a discussion on the current situation in Nepal.
"External Affairs Minister emphasised that it is in India's interest that Nepal progresses as a stable, secular and democratic Republic and indicated that India would welcome whatever consensus emerges among Nepali political actors," they said.
Nepal's transition to democracy from Monarchy began in 2008 when it was declared as 'Federal Democratic Republic'. However, the transition has been marred by ethnic, caste, religious, ideological and regional differences and have apparently made political agreements impossible.
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As many deadlines came and went, the assembly was unable to draw up a Constitution or settle on the timing or method for holding further elections. But it did manage to agree on a Maoist Prime Minister, Baburam Bhattarai, and a cabinet.
The Nepalese President, who is on a five-day visit to India, earlier met his Indian counterpart Pranab Mukherjee.