New Delhi, Jan 11 : India Monday committed one billion dollars line of credit for developmental projects in Bangladesh and transformed its bilateral ties by signing five accords, including three key security pacts to expand counter-terror cooperation.

Prime Minister Manmohan Singh and visiting Bangladesh Premier Sheikh Hasina held nearly two-hour-long discussions on a range of bilateral issues.

This visit has opened a new chapter in India-Bangladesh relations, reflecting the unity of minds and hearts, Manmohan Singh told Sheikh Hasina.

The one-billion dollar line of credit is the largest ever one-time bilateral financial assistance India has provided to any country.

This will be used for construction of railway bridges and lines, supply of coaches and locomotives and buses, and assistance in dredging, an issue of pressing concern to Dhaka.

India also agreed to supply 250 MW of electricity through its central grid. The two sides took major steps to improve connectivity, including the start of the Akhara-Agartala rail link.

The ties between the two nations had suffered under the previous regime in Dhaka over a host of tricky issues, including the alleged sheltering of insurgents from India's northeastern states in Bangladeshi territory.

The three security-related pacts signal a major step forward in expanding counter-terror cooperation and in addressing India's concerns over this issue that had earlier strained their ties.

The pacts will help New Delhi press Dhaka for the extradition of suspected insurgents from its northeastern states who have taken shelter in Bangladeshi territory over the years.

Earlier Monday, Sheikh Hasina, who is on her first visit to India after assuming power last year, was accorded a ceremonial welcome in the forecoyrt of Rashtrapati Bhavan.

The Bangladesh leader called on President Pratibha Patil, met External Affairs Minister S. M. Krishna, ruling United Progressive Alliance chair Sonia Gandhi, Finance Minister Pranab Mukherjee and Leader of Opposition Sushma Swaraj.

Sheikh Hasina will be conferred the prestigious Indira Gandhi Prize for Peace, Disarmament and Development at a function at the Rashtrapati Bhavan Tuesday. She will go to Ajmer Wednesday to visit the shrine of the much-revered sufi saint.

India is leaving no stone unturned to make Sheikh Hasina's visit to India "path-breaking" one and has underlined that it's "a historic opportunity to build a new and forward-looking relationship."

Describing Sheikh Hasina as "a great leader of her country", Minister of State for External Affairs Shashi Tharoor said: "We in India are looking forward to a transformation in our relationship with Bangladesh."

"Both our countries - India and Bangladesh - share the same desire to make this a relationship that fulfils our vision of a future that ensures the well-being of both our peoples," he said at a lecture here on "India's Vision of Peace, Security and Development in South Asia."(IANS)