KATHMANDU, May 11, 2018 (News Wires) - Indian Prime Minister Narendra Modi prayed at a renowned Hindu temple with his Nepalese counterpart K.P. Sharma Oli on Friday as he started a visit aiming to reset strained relations between the neighbours. "Nepal has welcomed me here as the prime minister of India, but this grand welcome is in honour of thousands of years of tradition between our two nations," Modi said at the Janaki Temple in Janakpur, which is dedicated to the Hindu goddess Sita. "This will act as a foundation for our economic development, cultural ties and a strong people to people contact between the two nations." Modi has cast the visit as part of his "neighbourhood first" policy. It is the latest in a series of goodwill gestures by New Delhi, which has been alarmed by China's growing influence in Nepal. In 2017, Chinese firms pledged more than $8.3 billion in investment, dwarfing Indian commitments of $317 million. In May last year, Nepal signed up to Beijing's ambitious One Belt, One Road infrastructure initiative. Modi is due to fly to Kathmandu later where he will inaugurate construction of the India-backed $1.4-billion Arun Three hydropower plant. The plant is the first of five mega hydropower projects, two of which are backed by Chinese companies, to begin construction, which marks a diplomatic win for India.