Speaking at a civic reception in Janakpur, Modi's first stop during a two-day visit to Nepal, the prime minister laced his speeches with mythological references and symbolism, underlining the religious and cultural links between the two countries.
Modi also read out a small paragraph of "Ramcharitmanas" to describe the relations between Nepal and India.
The government has identified 15 destinations in India for development under the Ramayana Circuit theme - Ayodhya, Nandigram, Shringverpur and Chitrakoot (Uttar Pradesh), Sitamarhi, Buxar and Darbhanga (Bihar), Chitrakoot (Madhya Pradesh), Mahendragiri (Odisha), Jagdalpur (Chhattisgarh), Nashik and Nagpur (Maharashtra), Bhadrachalam (Telangana), Hampi (Karnataka) and Rameswaram (Tamil Nadu).
Last month, the compound wall of the Arun-III plant's office in Tumlingtar area was damaged in the explosion, weeks before its inauguration.
He also announced assistance of 1 billion Indian rupees (14.85 million USA dollars) for the development of Janakpur.
While noting that Nepal's recent elections and their outcome will be written in golden words in the country's history, Modi said the bilateral ties are special and that he was visiting at "a special time".
Modi will visit a second Hindu pilgrimage site near Nepal's border with Tibet on Saturday.
Prime Minister Narendra Modi on Friday inaugurated a cross-border bus service linking Nepal's Janakpur with Ayodhya as part of the Ramayan circuit. "Similarly, Nepal is incomplete without India and India is incomplete without Nepal", he said.
He expressed the confidence that the people to people relations between the two countries are being nurtured on the basis of brotherhood and equality.
Prime Minister Narendra Modi met Nepal Vice President Nanda Nanda Bahadur Pun in Kathmandu, yesterday. Police also arrested some students staging a sit-in at Tribhuvan University, asking Modi to say sorry to Nepalis for inflicting misery on them in 2015-2016.
According to the agreement, India will help Nepal address problems it faces due to its landlocked position. "India-Nepal ties are historic".
IANS adds that in Janakpur, Modi launched the Janakpur-Ayodhya bus line and pledged Rs. 100 crore aid towards the city's development.
Kathmandu blamed New Delhi for the blockade that caused a severe shortage of fuel and goods as Nepal struggled to recover from a devastating quake earlier that year.
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