India has agreed to provide special aid package to Nepal for the recovery of the economy, infrastructure development and has renewed its commitment to assist Nepal in peace building and democratisation.

On his second day of goodwill visit to India Prime Minister G P Koirala met with Indian PM Manmohan Singh, President APJ Abdul Kalam and Indian Home Minister Shivraj Patil and former PM Chandra Shekhar.

Talking to the reporters after the meeting between the PMs, India's Minister of State for External Affairs, Anand Sharma said that India has expressed its full commitment in infrastructure development and economic recovery. According to Himalkhabar.com, Sharma said, "Priority areas for special economic package is being discussed and would be made public through a joint statement by the Prime Ministers of the two countries at the end of Koirala's four-day tour to New Delhi."

Sharma also said that Singh promised to provide assistance to Nepal in its road to recovery and democratisation. He said that the Indian government supported Nepal in its decision to bring the Maoist rebels to the mainstream. "However, the Maoists should stand by their commitment to democracy by giving up violence."

Singh, who personally went to the airport to receive Koirala, called him South Asia's brave democracy fighter. The prime minister arrived in the Indian capital with his 43-member entourage on a four-day goodwill visit on Tuesday.