NEW DELHI, Sept 12: India and Nepal agreed on Sunday to intensify cooperation in curbing the activities of the 'extremists and terrorists', a joint statement said at the end of a visit by Nepal's Prime Minister Sher Bahadur Deuba.

The two sides expressed satisfaction at the ongoing cooperation under the existing mechanism in the areas of supply of equipment, training and exchange of information, the statement said. Mr Deuba thanked the India government "for the timely and substantive support provided by India in Nepal's efforts to deal with the Maoist insurgency."

Indian Prime Minister Dr Manmohan Singh "reassured the support of the Government of India for further strengthening of Nepal's security forces including the Nepal Police," the statement said.

The prime ministers stressed the need for an early conclusion of the Extradition Treaty and Agreement on Mutual Legal Assistance on Criminal Matters. They directed their home secretaries to take up the matter in their next meeting with a view to finalizing the documents.

Both leaders expressed satisfaction at the progress made by the Joint Technical Level Boundary Committee. They directed the committee to complete the remaining mandated tasks by June 2005.

India also agreed to consider the utilization of Jawaharlal Nehru Port in Mumbai for Nepal's use of its transit cargo. The prime ministers welcomed the agreement between Indian Oil Corporation and Nepal Oil Corporation for a joint venture regarding construction of an oil pipeline between Raxaul (India) and Amlekhgunj(Nepal).