India today said that progress is being made on the issue of resuming military supplies to Nepal, which were suspended in 2005 when former king Gyanendra assumed absolute power. "Yes, given the policies of both the governments we are moving ahead  and it is making progress," said Indian Army  Chief General Bikram Singh to  the media person.

Asked why he chose Nepal as the first country to visit just a month after his appointment to the top Indian army post, Gen Singh said, "this signifies that Nepal is very special to all of us."

Gen Singh, who is also scheduled to call on President Ram Baran Yadav, said he brought with him "greetings from the Indian army and the people of India."

Gen Singh, who is visiting Nepal at the invitation of Nepal Army chief Chhatraman Singh Gurung, had held bilateral talks with his counterpart yesterday during which they discussed ways to enhance bilateral military cooperation.

He also visited Panchkhal in the east of Kathmandu, where the Birendra Peacekeeping Operations Training Centre of the Nepal Army is located.

On Friday, Gen Singh will travel to Lumbini, the birth place of Lord Buddha, situated in western Nepal and also inspect the Indian Army Pension Camp and Nepal Army's Western Divisional Headquarters in Pokhara before flying back to Delhi on Saturday.

The comments of Indian Army Chief, who is here on his first foreign trip since assuming office last month, came after he paid a courtesy call on Prime Minister Baburam Bhattarai.

Indian Army Chief General Bikram Singh, on a four-day's official visit to Nepal, was Wednesday conferred the rank of an honorary General of the Nepal Army.

President Ram Baran Yadav formally conferred the rank on Gen. Singh at a ceremony in Kathmandu also attended by Prime Minister Baburam Bhattarai, members of his cabinet and Nepal Army chief Gen. Chhatra Man Gurung.

The Indian and the Nepalese armies traditionally honour each other's chiefs by conferring the honorary rank of general.

The Nepal Army chief was similarly conferred the honorary rank of general of the Indian Army by President Pratibha Patil in December 2009.

Speaking on the occasion, Gen. Bikram Singh said it was "a great honour" to have been bestowed with the honorary rank.

"This will further strengthen the bonds of friendship between the two countries and their armies," he said.