New Delhi, Oct 22 (IANS): A day after the two countries signed three pacts, including an investment protection agreement, Nepal's Prime Minister Baburam Bhattarai Saturday described his visit to India as "successful" and stressed that it has "opened a new chapter" in the bilateral relationship.

"My visit was a successful one. Whatever misunderstandings there were, they have been dispelled," Bhattarai told reporters here.

"A new chapter has been opened in Indo-Nepal relations. Issues of mutual interest were discussed," he said, signalling a warming of ties between New Delhi and the Maoist-led dispensation in Kathmandu.

Bhattarai was giving expression to a "back-to-business" approach between New Delhi and Kathmandu which wants the Indian government to use its leverage with various political formations in Nepal to push forward the peace process.

Earlier, New Delhi has been wary of the Maoist leadership, but has been building bridges in a bid to stabilize the situation in the Himalayan country.

Bhattarai Saturday met Home Minister P. Chidambaram and Defence Minister A.K. Antony and discussed with them issues related to expanding security cooperation.

In his talks Friday, Bhattarai briefed Prime Minister Manmohan Singh about recent political developments in his country and sought New Delhi's backing for spurring the peace process in his country that continues to be bogged down in factional squabbles.

Manmohan Singh had assured the India-educated Maoist leader that New Delhi will do all it can to encourage Nepal to forge political consensus to quicken the process of the making of a new constitution.

The new equations between New Delhi and Kathmandu were reflected in a $250 million line of credit India unveiled after the talks between the two leaders Friday.

In yet another confidence-building measure, India and Nepal signed a long-overdue Bilateral Investment Promotion and Protection Agreement.

In a key concession, Kathmandu finally relented to address the security worries of Indian investors. The pact entails granting compensation to investors whose assets suffer losses due to war, armed conflict or a state of national emergency -- a long-standing Indian demand.

Bhattarai, who studied at Jawaharlal Nehru University, began his maiden visit to India as the prime minister Thursday on a positive note by stressing that the fates of the two countries were interlinked and called for unity between the people of India and Nepal.

He goes to Hardwar and Dehradun before heading back to Kathmandu Sunday.