New Delhi, Aug 20 - India has pledged assistance of Rs.20 billion to Nepal for infrastructure projects, Finance Minister Pranab Mukherjee told visiting Nepali Prime Minister Madhav Kumar Nepal.

The Nepali prime minister arrived Monday on a five-day visit to India - his first to the country since assuming office three months ago. He met Prime Minister Manmohan Singh Tuesday and held detailed discussions with him.

Thursday morning, Finance Minister Mukherjee called on Nepal at his suite in Delhi's Oberoi Hotel.

According to officials, Mukherjee told him that a package of Rs.20 billion worth of financial assistance will be announced to mark the Nepali premier's visit.

This assistance will basically be a new fund allocation for existing rail and road projects which were stalled. This will also cover beefing up of border infrastructure, including constructing integrated border check-posts.