Prime Minister Narendra Modi congratulated Pushpa Kamal Dahal "Prachanda" on Sunday on being elected as the new leader of Nepal and said he looks forward to working with him to further strengthen the friendship between the two countries.

CPN-Maoist Centre chairman Prachanda was appointed Nepal's new prime minister after the former guerrilla leader dramatically broke away from the five-party ruling alliance led by the Nepali Congress, ending the political uncertainty after last month's general elections failed to produce a clear winner.

"Warmest congratulations @cmprachanda on being elected as the Prime Minister of Nepal. The unique relationship between India and Nepal is based on deep cultural connect and warm people-to-people ties. I look forward to working together with you to further strengthen this friendship," Modi said in a tweet.