Dahal tried to assure India that Nepal is open for business. India showed its willingness to engage with Nepal's new rulers, but the government and business will be cautious and would first like to test Dahal on his commitments.

The visit did not throw up any major surprises. There was an in principle agreement to review the 1950 treaty. India promised to ease fuel supply for three months. Delhi will help facilitate easier movement between Jogbani and Raxaul in Bihar which will come as relief for all those stranded due to the damaged highway in Sunsari.

On the bilateral front, the big achievement was the reactivation of institutional mechanisms that had been dormant for some time. A top Indian foreign policy official told us: "You have not had a government for so long. Many issues are in limbo. What this relationship needs is less noise and more work. And these institutions will do that."

The foreign secretaries will meet to review the treaty, home secretaries will discuss security issues. India has concerns about narcotics, crime, fake currency notes and "ISI activities" while Nepal has complaints about cross border crime by groups operating in Bihar.

The water resource secretaries will discuss flood control, irrigation and hydropower. The Indian side is willing to give Nepal a role in maintenance and repair of the Kosi embankment in principle, but it will require work at the technical level. The Prime Minister made big promises about "mega projects" and this mechanism will sort out the details. The commerce secretaries will look at how to overhaul the trade relationship.

The peace process was discussed in internal meetings, including the issue of integration. Indian foreign secretary Shiv Shanker Menon said: "The Nepali side briefed us about the remaining issues in the process and gave us their views on integration." India believes that the Nepal army is a stable institution of the state and does not want changes that will drastically affect the chain of command and structure of the army. At the same time, it recognises that there is a need to figure out a future for PLA combatants soon.

But the visit was essentially a "get to know each other" trip. A Nepali foreign policy official told us: "The Indians were in listening mode. They were keen to know what our priorities are and what do we mean when we say we want a new relationship."

Prachanda's own personal and political motive was to make new friends. The Indians humoured him but let it be known that they expect him to act on issues spanning from industrial security of Indian companies to "anti Indian" activities.