Nepal's Deputy Prime Minister and Minister for Foreign Affairs Kamal Thapa inaugurated the two-day meeting, which was followed by a close-door discussion by its eight members - four members each from Nepal and India.
The meeting would finalise the body's agenda, timeframe, code of conduct, as well as working procedures, The Himalayan Times reported.
Thapa said Nepal and India "are linked by the same profile of geography that begins from the high Himalayas and run down to the Gangetic plain."
He also acknowledged the "hiccups" in the bilateral ties.
"At times, differences and misunderstandings or even feelings of suspicion arise between us. Without any obvious reason, sometimes, the smooth relations suddenly face odd moments," Thapa said adding that the group was conceived to ensure that such differences do not arise.
The EPG members from Nepal are former foreign minister Bhekh Bahadur Thapa, former chief commissioner of the Commission for the Investigation of Abuse of Authority Surya Nath Upadhyay, former law minister Nilamber Acharya and CPN-UML lawmaker Rajan Bhattarai.
The body is expected to review the entire gamut of Nepal-India relations as well as update or amend all exiting bilateral treaties, agreements, understandings, including the Peace and Friendship Treaty of 1950.
The formation of the EPG was decided upon Nepal's proposal during the third Nepal-India Joint Commission meeting in July 2014.
