Nepal and Bangladesh will be connected via a tunnel to promote transnational road link, reports The Kathmandu Post quoting Matrika Prasad Yadav, Nepalese minister for industry, commerce and supply.

Inaugurating the third conference of small- and medium-sized enterprises from China and South Asian countries in the Capital on Sunday, Minister Yadav said a tunnel would be constructed to connect the two countries with the shortest route.

A stretch of the India territory lies between Nepal and Bangladesh.

Stressing Nepal's good relations with China, he said Nepal's dream for prosperity could be realised by further consolidating such ties.

Minister Yadav invited South Asian countries to invest in Nepal with confidence, urging entrepreneurs to boost production.