Kathmandu, Aug 31 (IANS): India's Prime Minister Narendra Modi and his Nepalese counterpart K.P. Oli here on Friday met and discussed bilateral issues, even as the two countries inked an MoU on a railway project survey in the Himlayan nation.

The two leaders met on the sidelines of the 4th Bimstec Summit that concluded on Friday. It was their third meeting in six months.

They directed officials of their respective countries to resolve outstanding issues at the earliest.

The Memorandum of Understanding on a survey for a broad gauge railway line between Raxaul in Bihar and Nepal capital Kathmandu was signed by Nepalese Ministry of Physical Planning and Works Secretary Madhusudan Adhikari and Indian Ambassador to Nepal Manjiv Singh Puri in the presence of the two Prime Ministers.

A preliminary engineering-cum-traffic survey will be conducted by railway officials from both sides within a year with Indian assistance. A detailed project report will be prepared later before the construction is taken up.

Nepal and India had agreed to expand rail line from Raxaul to Kathmandu during the India visit of Oli in April.

Modi also held talks with Bhutan official Lyonpo Tshering Wangchuk on the summit sidelines on Friday and his Thailand counterpart Prayut Chan-o-cha.