Energy was high on the agenda as India's new prime minister, Narendra Modi, began a two-day visit to Nepal on Sunday, eager to reclaim lost ground from China in the race for resources.

A vast network of fast-flowing rivers through the Himalayas leaves huge untapped hydropower resources at Nepal's disposal, and New Delhi has spent years encouraging Indian investment with an eye on the country's water resources.

But proposals to develop joint ventures between India and Nepal have stalled due to disagreements over perceived threats to Nepalese sovereignty, allowing China to step into the breach.