The meeting took place at a five star hotel an hour after Modi arrived here on a two-day trip, becoming the first Indian Prime Minister to pay a bilateral visit to Nepal in 17 years.
"The talks were held in a very cordial and friendly atmosphere," Pandey told PTI after the meeting.
"We have to move hand-in-hand in development," he said.
Pandey said during the brief meeting some bilateral issues including hydro-power, trade, energy and security were covered. Political and cultural issues also came up for discussion.
The two leaders also underlined the need for expediting the ongoing projects being implemented under Nepal-India cooperation.
All the leading dailies here published banner headline news today covering Modi's visit.
"Modi's visit is a turning page in Nepal-India relations" describes a front page article carried by The Kathmanmdu Post.
Security was tightened in Kathmandu and most of the schools voluntarily announced closure for today and tomorrow in view of Modi's visit.
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