Seeking to take bilateral ties to a "new level", India and Nepal today held the first meeting of the joint commission after a gap of 23 years during which both sides decided to enhance cooperation in diverse areas including defence, security, trade and investment, water resources and border issues.

The joint commission meeting was co-chaired by External Affairs Minister Sushma Swaraj and her Nepalese counterpart Mahendra Bahadur Pandey which largely agreed to further "reinvigorate" the relationship by stepping up engagement in new areas.

The meeting decided on setting up an Eminent Persons Group to identify new areas of cooperation and suggest measures to help both the countries seize all possible opportunities. Both the countries have agreed to the terms of reference for setting up of the group, government sources said.