New Delhi: Nepal and China have signed three pacts to strengthen their ties in power and energy sectors and undertake a feasibility study to excavate natural gas and petroleum in the Himalayan country, including in the southern Terai plains.

The pacts were signed after visiting Chinese vice premier Wang Yang held discussions with Nepals deputy prime ministers Bijaya Kumar Gachhadar and Krishna BahadurMahara in Kathmandu.

Gachhadar reiterated Nepal’s commitment to the One China policy, "including the principled position of not allowing its territory to be used against neighbours."

Both sides held discussions on enhancing cooperation in tourism, infrastructure development, energy, cross-border connectivity and people-to-people relations.

The agreements signed cover economic and technological cooperation, oil and gas resources exploration, and promotion of investment, according to Nepals foreign ministry.

The pacts include a feasibility study for excavating natural gas and petroleum in mountain areas and plains of the Terai region, Nepals state-run National News Agency reported.

The two countries also agreed to establish hydropower projects and transmission lines and take steps for economic and technological development in Nepal, which suffers from acute shortage of electricity.