India on Monday expressed its readiness to work with Nepal to restore stability and take the neighbouring country on the path of economic development.

New Delhi's assurance was conveyed by Prime Minister Manmohan Singh during a meeting with his Nepalese counterpart G P Koirala, who is in Delhi to attend the two-day SAARC Summit starting on Tuesday.

Dr Singh conveyed India's full support to the success of the process in Nepal and to the leadership of Koirala, Foreign Secretary Shiv Shankar Menon told reporters in Delhi.

Dr Singh accepted an invitation by Koirala to visit the Himalayan state.

New Delhi has welcomed the formation of an interim government in Nepal, saying it marks another step towards the implementation of the peace process and the creation of conditions for free and fair elections there.

Nepal's peace process, criminal activities in bordering Terai areas of the Himalayan state came up during the parleys.