The meeting took place at a five star hotel an hour after Modi arrived here on a two-day trip, becoming the first Indian Prime Minister to pay a bilateral visit to Nepal in 17 years.
"The talks were held in a very cordial and friendly atmosphere," Pandey told PTI after the meeting.
"We have to move hand-in-hand in development," he said.
Pandey said during the brief meeting some bilateral issues including hydro-power, trade, energy and security were covered. Political and cultural issues also came up for discussion.
"He (Modi) speaks less but he is result oriented. During my meeting, I felt whatever he says he believes in doing it," he said when asked about his meeting with the Prime Minister.
The two leaders also underlined the need for expediting the ongoing projects being implemented under Nepal-India cooperation.
All the leading dailies here published banner headline news today covering Modi's visit.
"Modi's visit is a turning page in Nepal-India relations" describes a front page article carried by The Kathmanmdu Post.
Security was tightened in Kathmandu and most of the schools voluntarily announced closure for today and tomorrow in view of Modi's visit.