Nepal and India have moved one step forward toward joint developing and utilizing their common boundary river.

The governments of Nepal and India agreed to open a joint project office in Kathmandu for investigations of the Pancheshwar project and completing the detailed project report (DPR) in the end, said a press release issued by the Indian embassy here Thursday.

According to the Mahakali Treaty signed by Nepal and India in 1996, the two countries decided to launch the Pancheshwar multi-purpose project for joint utilization of the boundary Mahakali river.

But a joint DPR, which will serve as the guidelines of the project, can not be finalized as the two countries can not reach an agreement on the details of the project, such as its costs and magnitude, or even how to share the benefits of the completed project.

The joint project office is the first step for DPR and will function under the direction of the joint group of experts of Nepal and India constituted for the purpose by the two governments, said the release.