Addressing a crowd during a reception in Janakpur, PM Modi - who wore a traditional pink turban - said Nepal comes first in India's "Neighbourhood First" policy.

"Without Nepal, India's faith is incomplete. Without Nepal, India's history is incomplete. Without Nepal, India's dhams (temples) are incomplete. Without Nepal, our Ram is incomplete," PM Modi said after flagging off the bus.

High security is in place in Janakpur, Kathmandu and Muktinath where PM Modi is visiting. Close to 11,000 security personnel from both countries will be deployed during the visit.

The Indian government has identified 15 destinations in India, including Ayodhya, Nandigram, Hampi and Nagpur for development under the Ramayana Circuit theme.

PM Modi and KP Sharma Oli will hold one-on-one talks in Kathmandu later today. He will also meet the Nepal president, vice president and leaders of major political parties. In Kathmandu, PM Modi will offer prayers at the famous Pashupatinath temple.

The foundation stone for a hydroelectricity project in the eastern Nepal district of Sankhuwasabha will be laid by PM Modi via video conferencing. Indian government-owned Sutlej Jal Vidyut Nigam is handling the project in Nepal.

Tomorrow, PM Modi will offer prayers at the Muktinath temple, on the foothills of the Thorong La mountain pass. He is expected to announce a "surprise gift" for its development .

"I am confident that my visit will further cement our people-centric partnership with Nepal on the basis of mutual benefit, goodwill and understanding," PM Modi said in a statement.