Oli and his wife Radika Shakya who are on a three-day visit to India paid tributes to Mahatma Gandhi at Rajghat, before driving to the President's house.
On the streets of Kathmandu, when Deuba cancelled the project, it was common talk that "India had persuaded him to do so".
The Nepalese prime minister said his country needs support from its friends adding "relations among neighbours is different from other relations".
Apart from the main joint statement, both sides also issued three separate joint statements India-Nepal: New Partnership in Agriculture, Expanding Rail Linkages: Connecting Raxaul in India to Kathmandu in Nepal and New Connectivity between India and Nepal through Inland Waterways.
The Nepal-China agreements came at a time when Kathmandu-New Delhi ties started soaring after a border blockade in 2015-16.
The 135-day blockade from September 20, 2015, at the Raxaul-Birgunj check post - which accounts for about 70 per cent of supplies to Nepal from India - had soured bilateral relations, already strained by the big brother attitude India showed earlier in the year by making a big display of its relief work during the Nepal natural disaster.
Prime Minister Narendra Modi on Saturday assured visiting counterpart from Nepal K.P. Sharma Oli that India is committed to curbing misuse of open borders between the two countries.
This is Olis first visit to India after taking charge as Nepals prime minister for the second time in February.
The two prime ministers witnessed the ground breaking ceremony of the Motihari-Amlekhgunj cross-border petroleum products pipeline at Bihar's Motihari.
On April 7, 2018, the two Prime Ministers comprehensively reviewed the entire spectrum of multifaceted ties between the two countries.
Nepal PM KP Sharma Oli arrived in India on Friday.
"As friendly neighbours, our two countries need to be aware of and have respect for each others concerns and sensitivities".
As per the Nepalese media, Mr Oli will discuss various issues with Prime Minister Modi. The two countries have recently also signed a transit treaty. Nepal is strategic point between India and China.
India is believed to be attempting to rebuild its relationship with Oli. He described the rail and waterways connectivity initiatives as well as another proposal for India to help Nepal in agriculture as "game changing initiatives". They hoped that its early operationalization will enhance cross-border trade and transit of goods and movement of people bringing greater opportunities for shared growth and development.
On his first foreign visit after coming to power, Nepal's Prime Minister Kharga Prasad Oli focused on working to strengthen bilateral ties while simultaneously eliminating China from discussions, thereby diluting apprehensions about there being any "confusion" between the two neighbouring countries.
There were indications that India was losing its leverage in Nepal and it became more apparent after the victory of the left alliance in the general elections following which Oli was sworn in as the prime minister. We want to create a model relationship, which makes not only us but our posterity equally proud of our accomplishment.